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Music Business Plan Template

music business plan

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their music businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a music business plan template step-by-step so you can create your plan today.

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What Is a Music Business Plan?

A music business plan provides a snapshot of your music business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Music Business Plan

If you’re looking to start a music business or grow your existing business you need a music business plan. A business plan will help you attract investors and raise money, if needed, and plan out the growth of your music business in order to improve your chances of success. Your music business plan is a living document that should be updated annually as your company grows and changes.

Source of Funding for Music Businesses

With regards to funding, the main sources of funding for a music business are bank loans and angel investors. With regards to bank loans, banks will want to review your music business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will want to see a professional music business plan. Such a plan will give them the confidence that you can successfully and professionally operate a music business.

The second most common form of funding for a music business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding or, like a bank, they will give you a loan. Venture capitalists will not fund a music business.

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How to write a music business plan.

Your music business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your music business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the type of music business you are operating and the status; for example, are you a startup, do you have a music business that you would like to grow, or are you operating a chain of music businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the industry. Discuss the type of music business you are operating. Detail your direct competitors. Give an overview of your target audience. Provide a snapshot of your marketing plan. Identify the key members of your team, and offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of music business you are operating.

For example, you might operate one of the following types:

  • Recorded Music – This type of music business sells music that has been recorded in a studio.
  • Music Licensing – This type of music business licenses music for films, TV shows, video games, advertisements, online videos, etc.
  • Live Music – This type of music business sells tickets to live concerts and tours. They might also operate a school that teaches people how to become successful musicians, or they might sell memorabilia such as T-shirts and posters.
  • Music Publishing – This type of music business is in the rights business; they represent songwriters. If someone wants to use a song by a songwriter that is represented by the music publishing company, they need to get permission and then pay a royalty.
  • Music Production – This type of music business provides a service for musicians and recording artists. They might produce and record an album and then provide marketing services such as radio promotion and public relations.
  • Music Business Consulting – This type of business is in the business of providing advice to musicians on how to become successful. For example, they may offer consulting on how to promote your music and how to book gigs.
  • Music Artist – This type of business operates as an individual musician or music group. For example, they might be solo artists, bands looking for a record deal, or groups of musicians hoping to become successful together.
  • Music Education – This type of music business offers music lessons, either in-person or online.
  • Retail Music Store – This type of music business sells instruments, sheet music, and other music-related items.

In addition to explaining the type of music business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to questions such as:

  • When and why did you start the business?
  • What milestones have you achieved to date? Milestones could include sales goals you’ve reached, new store openings, etc.
  • Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the music business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards more people purchasing music online, you may want to focus your marketing efforts on digital platforms.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your music business plan:

  • How big is the music business (in dollars)?
  • Is the market declining or increasing?
  • Who are the key competitors in the market?
  • Who are the key suppliers in the market?
  • What trends are affecting the industry?
  • What is the industry’s growth forecast over the next 5 – 10 years?
  • What is the relevant market size? That is, how big is the potential market for your music business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your music business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments for a retail music store:

  • Adult beginning guitar players
  • Teenage/college-aged students who want to learn how to play the electric guitar and will commit time and money to do so
  • Middle-aged adults who want to learn how to play acoustic guitars for their own enjoyment
  • Vintage guitar enthusiasts who are looking for specific instruments that are considered rare or valuable.

The following are examples of customer segments for a music education business:

  • Parents who want their children to have a well-rounded education and believe that music is an important part of that
  • Children who want to learn to play an instrument because they enjoy music
  • Adults who want to improve their skills at playing an instrument they already know how to play

As you can imagine, the customer segment(s) you choose will greatly depend on the type of music business you are operating. Clearly, baby boomers would want a different atmosphere, pricing, and product options, and would respond to different marketing promotions than millennials.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the customers you seek to serve. 

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers or clients.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other music businesses within the same niche.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes physical stores, online stores, and even locally owned retail shops that sell instruments.

Here are some examples of indirect competitors within the music education niche: 

  • Local music store selling instruments
  • Online retailer selling musical instruments
  • The public school system offering a music program to students in grades K-12 or college offering a music ed program as a minor.

You need to mention such competition to show you understand that not everyone in the market is your direct competitor. Furthermore, including a SWOT analysis of your business in this section will demonstrate how you plan to compete against them.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

  • What types of customers do they serve?
  • What products/services do they offer?
  • What is their pricing (premium, low, etc.)?
  • What are they good at?
  • What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to reach out to customers of your competitors and ask them what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

  • Will you provide superior services?
  • Will you provide amenities that your competitors don’t offer?
  • Will you make it easier or faster for customers to book your own studio?
  • Will you provide better customer service?
  • Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a music business plan, your marketing strategy and plan should include the following:

Product : in the product section, you should reiterate the type of music that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to selling instruments, you may also offer music lessons, CD recordings of the lessons, and other merchandise related to your business.

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections, you are presenting the options you offer and their prices.

Place : Place refers to the location of your music business. Document your location and mention how the location will impact your success. For example, is your music business located in a commercial district with a lot of foot traffic? If not, will you offer delivery or online sales?

Promotions : the final part of your marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

  • Advertising in local papers and magazines
  • Reaching out to local bloggers and websites
  • Partnerships with local organizations (e.g., partner with vendors to provide recording packages at a discount over a la carte services)
  • Local radio stations advertising
  • Banner ads at local music venues
  • Social media advertising

Operations Plan

While the earlier sections of your music business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your music business such as serving customers, cleaning, ordering supplies, and so on. This section should list the specific tasks that will need to be completed each day and who will be responsible for them.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 25th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or launch a new location.

Management Team

To demonstrate your music company’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a music business.

Ideally, you and/or your team members have direct experience in the music business. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in music and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many customers will you serve? How much does it cost to provide your service/product? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your recording studio, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your music business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a music business:

  • Location build-out including design fees, construction, etc.
  • Cost of equipment like studio gear, instruments, amps, inventory, etc.
  • Payroll or salaries paid to staff
  • Business insurance
  • Taxes and permits
  • Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your studio design blueprint or location lease.

Music Business Plan Summary

Putting together a business plan for your music business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the music business, your competition, and your potential customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful music business.

Music Business Plan FAQs

What is the easiest way to complete my music industry business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Music Industry Business Plan.

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of music business you are operating and the status; for example, are you a startup, do you have a music business that you would like to grow, or are you operating a chain of music businesses?

How Can I Generate Multiple Income Streams In My Music Business?

Whether you are a band, artist manager, recording producer, record label, or music store, if you can learn how to take the best advantage of both live and recorded revenue streams, you may be able to beat competitors at the music game. Your music business plan should describe your strategy of utilizing these two sides of the music industry.

Live concert tickets can be sold for hundreds of dollars for popular groups, while up-and-comers may need to play for just tips at bars and small venues. However, there is a place for every type of musician on this spectrum, and almost all musicians maintain a live performance schedule even as they become successful recording artists. Live concerts offer an opportunity for the group or artist’s music to be exposed to new audiences in a visceral way, sometimes driving direct sales of CDs at the concert itself, and leading to word-of-mouth inspired sales down the road.

Live concerts can be a significant revenue stream for a successful music artist, but they must play at venues large enough to cover the fixed costs of production (marketing, ticket sales, equipment rental, and set-up, travel, wages, and venue rental) leaving a net profit. If venues are too small and cost too high, concerts may have to be considered just a promotion method for other revenue streams, like recording sales.

Recorded Music

The sales of CDs or mp3s of the group or artist’s music, on the other hand, leave much more potential for huge returns. The profitability of selling recorded music increases significantly as the number of CDs or mp3s increases, as the cost of producing and selling each additional CD (and especially mp3s) approaches zero. Recordings can also help promote concert sales to a certain extent, through the release of singles and promo CDs. This can be through giveaways and through radio promotion of those songs.

If each revenue stream is significant on its own and also reinforces the other, you can build an extremely profitable business over time.

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Music Business Plan Template

Written by Dave Lavinsky

Music Business Plan

You’ve come to the right place to create your music business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their music businesses.

Below is a template to help you create each section of your Music business plan.

Executive Summary

Business overview.

Musicians First Studio is a startup music company located in Nashville, Tennessee. The company is founded by Michael Smith, an experienced musician who has gained valuable knowledge on how to manage a music business during the past ten years while working at My Music Production & Management, another local music company. Now that Michael has experienced managing a music company, he is ready to start his own business, Musicians First Studio. Michael is confident that his skills as a musician, combined with his understanding of business management, will enable him to run a profitable music company of his own. Michael is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a music studio – sales and marketing, production, artist management, music instruction, financial reporting, studio equipment maintenance, and client relations.

Musicians First Studio will provide a full suite of music production, management, and instruction services for both novice and professional musicians in the Nashville area. Musicians First will be the go-to music studio in Nashville for its client-focused services and dedicated professionals who are experienced in all aspects of the music industry. The company will be the ultimate choice for the needs of aspiring and professional musicians.

Product Offering

The following are the services that Musicians First Studio will provide:

  • Artist Management
  • Music Recording, Production, & Post-Production
  • Private Music Lessons & Group Classes
  • Venue Booking & Live Event Management
  • PR & Marketing for New Artists

Customer Focus

Musicians First Studio will target new and experienced musicians in Nashville who are looking for professional production, management, or marketing services. The company will also target aspiring musicians and children looking for music lessons taught by industry veterans. No matter the customer, Musicians First Studio will deliver the best communication, service, and professionalism.

Management Team

Musicians First Studio will be owned and operated by Michael Smith. Michael is a graduate of Tennessee University with a degree in music. He has over ten years of experience working as a manager for another local music studio. Michael will be the company’s chief executive officer. He will oversee the recording/production process, music equipment, and studio staff’s activities.

Michael has recruited his former administrative assistant, Jessica Garcia, to be the company’s chief operating officer and help oversee the studio’s operations. Jessica will handle the day-to-day operations, including budgeting, scheduling, client relations, and logistics.

Michael and Jessica have recruited an experienced marketing director, John Brown, to become a member of the Musicians First Studio management team. John is a graduate of the University of Washington with a bachelor’s degree in sales and marketing. Michael and Jessica rely on John’s expertise to execute the company’s marketing plan and advertising strategies.

Success Factors

Musicians First Studio will be able to achieve success by offering the following competitive advantages:

  • Skilled team of music production technicians and veteran musicians who will work one-on-one with clients to reach their individual music goals whether they’re looking to record a new album or learn a new instrument.
  • Musicians First Studio is one of the only studio’s in the area that offers a wide range of services for musicians of all skill levels and goals.
  • The company offers competitive pricing and discounts for referrals.

Financial Highlights

Musicians First Studio is seeking $800,000 in debt financing to launch its music business. The funding will be dedicated towards securing the studio and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff and marketing expenses. The breakout of the funding is below:

  • Studio build-out: $340,000
  • Music equipment, supplies, and materials: $280,000
  • Three months of overhead expenses (payroll, utilities): $160,000
  • Marketing costs: $10,000
  • Working capital: $10,000

The following graph below outlines the pro forma financial projections for Musicians First Studio.

Company Overview

Who is musicians first studio.

Musicians First Studio is a newly established music company in Nashville, Tennessee. Musicians First will be the first choice for aspiring, novice, and experienced musicians in Nashville and the surrounding communities for its full-suite of professional services provided by industry veterans. The company will provide a wide range of services including recording/production, music lessons, artist management, and marketing for new musicians.

Musicians First Studio will be able to guarantee high quality production thanks to the latest and most innovative music technology operated by expert music production technicians. The company’s team of highly qualified professionals experienced in music, production, and marketing will manage the suite of services offered at the studio. In addition to customized services for musicians, customers will be able to book studio time that comes with use of equipment by the hour.

Musicians First Studio History

Musicians First Studio is owned and operated by Michael Smith, an experienced musician who has gained valuable knowledge on how to manage a music business during the past ten years while working at My Music Production & Management, another local music company. Now that Michael has experienced managing a music company, he is ready to start his own business, Musicians First Studio. Michael is confident that his skills as a musician, combined with his understanding of business management, will enable him to run a profitable music company of his own. Michael is recruiting a team of highly qualified professionals to help manage the day-to-day complexities of running a music studio – sales and marketing, production, artist management, music instruction, financial reporting, studio equipment maintenance, and vendor relations.

Since incorporation, Musicians First Studio has achieved the following milestones:

  • Registered Musicians First Studio, LLC to transact business in the state of Tennessee
  • Has identified an ideal location for the studio that is available for lease
  • Reached out to numerous contacts to include local musicians, production technicians, and venue managers to help spread the word about the new studio
  • Began recruiting a staff of musicians, music instructors, production technicians, marketing experts, and office personnel to work at Musicians First Studio.

Musicians First Studio Services

Industry analysis.

The global music industry is an estimated $60B market and is expected to grow by 8% by 2026. The broad music industry can be categorized into three primary segments; recording, live music, and music publishing. In the United States, the recording segment generated approximately $8B in revenues last year, while the live music segment brought in an estimated $9.5B, and the publishing segment totaled $1.8B. A majority of revenues generated in the recording segment come from streaming (28% of total industry revenue), with digital downloads and physical media coming in much lower (6.7% and 7.5% respectively). Revenue for the live music segment is generated primarily through ticket sales (37.1%) and sponsorships (10.3%). Publishing accounts for approximately 8.9% of total industry revenue.

Music streaming is one of the most significant trends in the industry, with the number of Americans who pay for streaming subscriptions at approximately 82.1M, up from 7.9M in 2014. Another trend is the emergence of independent artists and small record labels. These groups are earning more revenue than in years past and their percentage of revenue increase year over year is growing faster than that of larger record labels. With more options open to them when it comes to where and how to get their music out to consumers, artists, managers, and record labels have more opportunities for success than ever before.

Customer Analysis

Demographic profile of target market.

The precise demographics for Nashville, Tennessee are:

Customer Segmentation

Musicians First will primarily target the following customer profiles:

  • Novice-to-experienced musicians looking for recording/production services
  • Aspiring musicians of all ages looking for music lessons
  • Musicians looking for artist management, booking, and representation services

Competitive Analysis

Direct and indirect competitors.

Musicians First Studio will face competition from other companies with similar business profiles. A description of each competitor company is below.

My Music Production & Management

My Music Production & Management is one of the largest commercial music studios in Tennessee. The company was established in 1997 and offers professional music recording and production services for local musicians. My Music Production & Management also handles the business management activities for musicians including marketing, booking, and legal representation services. The company is well known for providing high quality production for some of the top artists in the region and has been recognized in various publications and music industry associations for its outstanding work in the local music community.

Genre Music

Founded in 2018, Genre Music is a small music company catering to local musicians in Nashville, Tennessee and surrounding areas. Genre Music is owned and operated by a veteran musician who has over 40 years of experience in the music industry. The company specializes in artist branding, marketing, and representation in addition to its top notch recording services. Genre Music has worked with a variety of up and coming artists in multiple genres and has a loyal customer base of regular musicians who use the company’s services.

Retro Recording & Productions

Retro Recording & Productions is a trusted Nashville, Tennessee-based music company that provides superior production and recording services for Nashville and the surrounding areas. The company is able to provide a wide variety of recording, production, and post-production services using its state-of-the-art music recording equipment. Retro Recording & Productions serves local musicians and national musicians. The company prides itself on being the number one choice for classic sound produced through modern technology. Retro Recording & Productions also manufactures its own collectible vinyl records in limited quantities.

Competitive Advantage

Musicians First Studio will be able to offer the following advantages over their competition:

  • The company offers competitive pricing on studio rentals and discounts for referrals.

Marketing Plan

Brand & value proposition.

Musicians First Studio will offer the unique value proposition to its clientele:

  • Musicians First Studio provides a full suite of services tailored to the individual musician’s needs. Professionals are equipped to provide services for all skill levels from the aspiring and novice musician, the the industry veteran.
  • The company’s studio is expertly designed for the clearest sound quality. The equipment is carefully selected to ensure the best sound possible.

Promotions Strategy

The promotions strategy for Musicians First Studio is as follows:

Social Media Marketing

The company’s marketing director will create accounts on social media platforms such as Linkedin, Twitter, Instagram, Facebook, TikTok, and YouTube. He will ensure Musicians First maintains an active social media presence with regular updates and fun content to get customers excited about using the studio’s services.

Professional Associations and Networking

Musicians First Studio will become a member of professional associations such as the Nashville Music Association, American Music Educators Society, and the Tennessee Music Production Association. The leadership team will focus their networking efforts on expanding the company’s artist and vendor network.

Print Advertising

Musicians First Studio will invest in professionally designed print ads to display in programs or flyers at industry networking events. The company will also send direct mailers to local residents advertising the services it provides.

Website/SEO Marketing

Musicians First Studio will utilize the in-house marketing director that designed the print ads to also design the company website. The website will be well organized, informative, and list all the services that Musicians First is able to provide. The website will also list information on the company’s events and featured artists.

The marketing director will also manage Musicians First’s website presence with SEO marketing tactics so that when someone types in a search engine “music company” or “music studio near me”, Musicians First Studio will be listed at the top of the search results.

The pricing of Musicians First Studio will be on par with competitors so customers feel they receive value when purchasing the company’s services.

Operations Plan

The following will be the operations plan for Musicians First Studio.

Operation Functions:

  • Michael Smith will be the CEO of the company. He will oversee the music production technicians, production process, and the music equipment maintenance. Michael has spent the past year recruiting the following staff:
  • Jessica Garcia – Chief Operating Officer who will manage the day-to-day operations, client relationships, scheduling, and logistics.
  • Nancy Johnson – Chief Financial Officer who will provide all accounting, budgeting, tax payments, and monthly financial reporting.
  • John Brown – Marketing Director who will oversee all marketing strategies for the company and manage the website, social media, and outreach.

Milestones:

Musicians First Studio will have the following milestones complete in the next six months.

12/1/2022 – Finalize lease to rent the studio facility

12/15/2022 – Finalize personnel and staff employment contracts for the Musicians First Studio management team

1/1/2023 – Begin build-out of the studio, purchase equipment, and test the acoustics

1/15/2023 – Begin networking at industry events and implement the marketing plan

2/15/2023 – Finalize contracts for musicians, instructors, production technicians, and marketing professionals

3/15/2023 – Musicians First Studio officially opens for business

Financial Plan

Key revenue & costs.

The revenue drivers for Musicians First Studio are the fees charged to customers in exchange for the company’s services and fees charged to book studio time by the hour.

The cost drivers will be the overhead costs required in order to staff a music company. The expenses will be the payroll cost, utilities, equipment and supplies, and marketing materials.

Funding Requirements and Use of Funds

Key assumptions.

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

  • Average hours booked per month: 120
  • Average fees per month: $30,000
  • Overhead costs per year: $640,000

Financial Projections

Income statement, balance sheet, cash flow statement, music business plan faqs, what is a music business plan.

A music business plan is a plan to start and/or grow your music business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your music business plan using our Music Business Plan Template here .

What are the Main Types of Music Companies?

There are a number of different kinds of music companies , some examples include: Recorded Music, Music Licensing, Live Music, Music Publishing, Music Production, Music Business Consulting, and Retail Music Store.

How Do You Get Funding for Your Music Business Plan?

Music companies are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

business plan for a music management company

Music Business Plan: A Guide for Music Industry Professionals

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A music business plan is crucial for any music industry professional looking to launch or grow their business. It provides a snapshot of the current state of the business and lays out a clear growth plan for the next five years. This is essential for understanding where the business is at and setting achievable goals for the future.

Check out our article below to learn more about creating an awesome music business plan and get a template.

What is a Music Business Plan?

A music business plan is a comprehensive and detailed document that outlines the goals, strategies, and financial projections for a music-related business. Whether it's a record label, music production company, artist management firm, or any other music-related venture, a business plan provides a roadmap for success. It helps to attract investors, secure loans, and guide overall operations.

From market analysis and competitive research to marketing and distribution strategies, a music business plan covers every aspect of the business to ensure clarity, direction, and long-term viability. It is an essential tool for anyone looking to establish or grow a music-related business in the highly competitive and dynamic music industry.

Why is it important to have a music business plan?

A music business plan is crucial for an artist's success in the industry for several key reasons.

It serves as a blueprint for the artist's career, outlining their goals, strategies, and financial projections. This document helps attract investors by showcasing the artist's vision, potential for return on investment, and realistic plans for reaching their target audience.

A well-crafted business plan guides decision-making by providing a clear direction and framework for the artist's activities and investments. Furthermore, it defines the artist's brand, including its image, style, and target market, which is essential for standing out in the competitive music industry.

In summary, a music business plan is instrumental in attracting investors, guiding decision-making, and defining an artist's brand, making it essential for achieving success in the music industry. Therefore, having a solid and comprehensive business plan is crucial for any aspiring musician or band looking to establish a successful and sustainable career.

How to Fill Out Your Lean Music Business Plan

In this guide, we will walk you through the steps of filling out your lean music business plan, from identifying your target audience to mapping out your marketing and sales strategies. 

We'll be referencing sections of the US Small Business Administration's ( SBA ) lean business plan template . Despite its generality, it works as a music business plan template. 

Aspects of this guide relate to the traditional business plan, which we will discuss later in the article. 

Business identity

A business identity helps your business specify exactly what you offer. Both the single-page lean plan and the traditional plan place importance on your identity. Let's say, for example, you're a business-owning musician who provides audio for creatives in the media industry. Here's how your identity might look:

Our business identity revolves around providing high-quality music and sound effects for TV programs, film industries, commercials production companies, video game developers, corporations, and event organizers. 

Through the lean template, try to identify your business in under one paragraph. Then, using the traditional template (see below), expand on that identity. Things like your mission statement, which we visit later, are an aspect of this.

The problem you're trying to solve

All businesses are problem solvers. Record labels help musicians with distribution, while music teachers help provide the next generation of musicians with a strong foundation. 

Naturally, you might wonder how this applies to musicians. Just saying "entertainment" feels a bit weak. There are bands, like Rage Against the Machine, who make music to push a movement. But if you're not part of that crowd, what do you put?

So, think about why you got into music-making in the first place. Any professional musician should think about who their music appeals to and what they want people to feel when hearing their music. You can then say your music solves that problem in a cheesy reminder that you think about more than what shows up on your financial statements. 

If you don't want to get too corny, think about who your music will most appeal to. Then, you can say what your target audience is. Think of something like this:

Creating music for young men and women that will entertain them and inspire them to explore challenging topics.

This problem-solving might feel generic, but you'll know your fans and why you make music. So, stay focused on that.

Solution your business presents

Once you consider the problem your business solves, you need to state how you solve that problem. Again, this is much easier for music industry professionals who work in support roles. Music distributors solve the problem by having direct connections with other distributors, while music marketers help bands reach out to fans via multiple social media platforms. 

As someone who makes music, your solution is the creation of music. So, ask yourself how the creation of your music solves this problem. Here's an example based on our situation above:

Our band writes music that delves into mental health struggles based on personal experiences and how we overcame them.

You might think that doing this as a musician feels silly, but think of it as a reminder. One of the reasons famous musicians like David Bowie and Tom Morello were so successful is focusing on how their music helps people. 

Competition 

Competitive market data varies depending on the territory you plan to target. For musicians and bands, this might involve bands in the local area and those in future touring locations. For musicians, the competition can also be a list of potential collaborators.

For everyone else not making music, other record labels and music production companies are just competition. Whether you can collaborate with them or not, you'll want to differentiate yourself from all the other options out there. Being another "me too" music business will make it easier to forget you. 

Using the lean small business plan, you'll want to stick this to two or three sentences. Be very general, knowing you can also expand using the traditional business plan. Here's an example of a made-up Tennesse company: My Music Production & Management: 

The competitive landscape for music production companies in Tennessee includes My Music Production & Management, Genre Music, and Retro Recording & Productions. My Music Production & Management offers a wide range of services, including music production, artist management, and music distribution. 

Revenue streams

Revenue streams come from various sources. A business plan reminds you of those sources so you can stay focused. As a musician, your income can come from many sources. Below is an example you can use under the lean business plan:

As a musician, my income comes from paid gigs, teaching music lessons, instrument repair services, and recording sessions. To ensure financial stability and growth, I plan to diversify my income by capitalizing on these different opportunities.

Your revenue streams will differ as a record label or other kind of music business. Like musicians, your revenue streams can vary. However, as a young business, you may specialize in specific areas. You might work on creating merch or distributing digital releases. 

Marketing activities

Marketing activities focus on how you plan on reaching out to different sources. For many new music businesses, this involves outreach through social media platforms. Here's an example of what you might include in your business plans:

Our marketing activities will primarily focus on building a strong online presence through social media and regional publications. We plan to utilize platforms such as Instagram, Facebook, Twitter, and TikTok to engage with our audience and share regular updates about our music and upcoming events. Additionally, we will work on developing a press kit to distribute to regional publications and media outlets to garner publicity and reach a wider audience.

Bands can create electronic press kits (EPKs) that are prebuilt for members of the media. This makes it easy for journalists and members of the media to share content about you, such as a new album release. You can also consider how much you might pay for advertising. Digital marketing activities like those above are the first choice, as this activity uses advanced targeting tools based on what people search for and their demographics.

Marketing traditionally focuses on the four Ps: product, price, place, and promotions. The first two Ps delve into your product line, which you'll learn about later. Promotions indicate the type of marketing you choose, and Place usually refers to the platforms your target audience uses. 

The lean business plan gives you a simple overview of your likely expenses, which can be detailed in your longer business plan. Part of these expenses include music taxes. Read our guide on music taxes for more details.

Expenses vary depending on the type of music business you run. You could pay to rent a studio for recording sessions, purchase recording equipment, access manufacturers, or pay for other expenses. These expenses can result in tax deductions .

Here's an example of what your expenses section might look like:

To get my music business up and running, I need to budget for several key expenses. Studio time would be required for recording and producing music, averaging around $50-$100 per hour. I'd also need to allocate funds for engineering talent, which could cost between $50-$200 per hour, depending on experience. Transportation costs for getting to and from recording studios or performance venues should be factored in, estimating around $200-$500 per month.

Legal fees for business formation are also deductible. When listing your expenses and considering deductions, ask yourself what your type of company would normally deduct. Reach out to Augur CPA if you'd like a comprehensive review.

The key roles section provides a list of high-ranking authorities in the business and explains the responsibilities and functions those roles bring to the business. Here's an example of what that might look like in your business plan:

1. Chief Executive Officer (CEO): Responsible for overall strategic direction and leadership of the organization, making key decisions and representing the company to the public and stakeholders.

2. Human Resources Department: This department is responsible for recruiting, training, and managing employees, as well as ensuring legal compliance and promoting a positive work environment.

3. Marketing Department: Responsible for promoting the organization's products or services, conducting market research, and developing marketing strategies to attract and retain customers.

4. Finance Department: This department is responsible for managing the organization's financial resources, including budgeting, accounting, and financial reporting.

5. Operations Department: This department is responsible for overseeing the organization's day-to-day activities, optimizing processes, and ensuring efficient production and service delivery.

As a new business, you might not need all of this detail in your roles. A new business owner wears many hats, handling all of this themselves.

As your business grows and you fill roles like those above, you'll want to create an operating agreement . Operating agreements dictate the roles, holding groups responsible for their actions. This can dictate things like voting rules, which are vital when making high-risk business decisions that require more input.

Your milestones tell readers, yourself, and business partners of the important milestones you've already taken or plan to take. Your lean business plan is a single sentence telling people what you generally plan to do. Larger business plans might look something like this:

Milestone 1: Lease Finalization

- Task: Negotiate and finalize the lease agreement for the studio space

- Deadline: by May 15th

Milestone 2: Personnel Contracts

- Task: Draft, review, and finalize contracts for hired personnel

- Deadline: by May 20th

Milestone 3: Studio Build-out and Equipment Purchase

- Task: Begin construction and build-out of the studio space, purchase necessary equipment

- Deadline: Construction to be completed by June 30th

Milestone 4: Networking and Marketing Plan Implementation

- Task: Develop and implement a networking and marketing plan to attract clients

- Deadline: Marketing plan to be in place by June 1st

Each milestone outlines specific tasks and deadlines to ensure a smooth and successful opening of a recording studio. A musician or distribution company should take a similar approach, focusing on initiatives that help them grow their business.

Filling Out Longer, Traditional Business Plans

The SBA's traditional business plan, which you can find here , is a multi-page document. It's an expanded version of the lean business plan, which you can provide upon request. When applying for business loans or bringing on business partners, this plan can help communicate your vision.

Traditional business plans might use a bit more jargon, like executive summaries and mission statements. Below, you'll learn a bit more about some of the more complex aspects of writing your detailed business plan.

Executive summary

Executive summaries summarize the main points of a business plan. The summary points include the purpose of the business, the business name, the target market, your business location, and how your business solves its target audience's problem. Here's an example you can use for inspiration:

The Executive Summary of my music business plan showcases my artist bio, mission statement, and unique selling proposition. As a musician, I bring a unique blend of classical training and modern influences, with a strong foundation in jazz, pop, and R&B. My mission is to create music that transcends genres and connects with audiences on a deeper level, aspiring to inspire and uplift through my art.

My unique selling proposition lies in my ability to blend diverse musical styles and deliver powerful, emotionally resonant performances. I have achieved recognition in local music scenes, including winning the Best New Artist award at a prominent music festival. My aspirations include reaching a global audience and collaborating with industry-leading producers to create music that leaves a lasting impact. What sets me apart from others in the industry is my unwavering dedication to authenticity and artistry, always prioritizing substance over trends.

For bands and musicians, the executive summary is a great way to showcase your passion for music. Notice the "unique selling proposition," which indicates how you plan on differentiating yourself compared to other companies.

Other companies, like music publishing companies, might focus a little less on the creative aspects of their business. An executive summary can differ slightly between companies. However, if you're new, start with the template until you get comfortable writing these plans.

Company description and mission statement

Your company description, based on the traditional plan, includes the mission statement, members, legal structure, and location of the company. It might also include the executive summary.

Here's an example of the description for a made-up company: SoundWave Entertainment:

Our company, SoundWave Entertainment, is structured as a Limited Liability Company (LLC) and has been in business for ten years. We specialize in providing top-quality live music entertainment, event production, and artist management services. Our diverse range of offerings includes wedding bands, corporate event entertainment, and music festivals. Our customer demographics range from engaged couples looking for the perfect wedding band to event planners seeking unique and memorable entertainment experiences. In the past decade, we have experienced significant growth, expanding our roster of talented artists and achieving a strong presence in the events industry. Our primary business goal is to continue providing exceptional musical experiences and to further expand our reach in the entertainment industry.

The description is simple enough, but the mission statement is arguably the most important aspect of your business plan. It's a few sentences long but shares the overall mission of your company, dictating where it goes and how it makes decisions. Mission statements are emotionally driven and connected to the morals and heart of the company's stakeholders. Here's how it might look:

At SoundWave Entertainment, we are committed to delivering unforgettable musical experiences and fostering the growth of talented artists. We strive to exceed our client's expectations by curating exceptional live entertainment and providing a platform for artists to showcase their skills. Our goal is to leave a lasting impression through the power of music, creating moments that inspire and connect people.

Market conditions and research

The traditional business plan offers a bit more room for reviewing your market conditions and researching your competition. Doing your own research helps you understand the market. Sharing your research on a business plan provides proof of your knowledge of market conditions. Here's a short example of market conditions:

The current market conditions in the music industry are characterized by several industry trends, including the shift towards streaming services, the resurgence of vinyl records, and the increasing importance of live performances for artists' revenue. Consumer behavior has also changed significantly, with more music fans opting for subscription-based streaming services over traditional album or single purchases. Key competitors in the industry include major streaming platforms like Spotify and Apple Music, as well as record labels and live event promoters.

Additional sections of your business plan include a detailed description of your customers, how your company outperforms the competition, and regulations that might impact your company.

Regarding regulations in the music industry, it helps to have a general understanding of the Digital Millennium Copyright Act ( DMCA ), fair use , and current communication laws. Knowledge of these laws or working with a music attorney can help you with this aspect of your business plan.

Service line and pricing structure

Your service line includes a complete list of your services and their costs. For musicians, this might include gigs, music lessons, and anything else you do to advance your career in music. It then breaks down the pricing of your services, including some potential for how that pricing can flex.

Services can vary heavily depending on your company and the services you offer. When you first start your business, you might specialize in a few areas. One milestone could be expanding to include additional features, like a record company offering email marketing services.

The service line section also includes your product lifecycle. For example, albums tend to make more money during their first year of release, and your lifecycle dictates how long you might make albums. If you go on a tour during the album, you might stop creating new albums or merchandise sales during this time. 

Service line information can also include information on intellectual property rights and how your band and albums will be copyrighted. You can also work to trademark your company (or band) logo.

Marketing, sales, and growth strategy

While your marketing research section details information about the market and industry, your marketing, sales, and growth section dictates how you plan on reaching target customers. The lean plan mentioned above briefly addresses this area.

The three areas you'll want to consider are your growth strategy, how you want to communicate with customers, and how you plan on selling your products.

Let's say you plan on creating your own Shopify e-commerce store for your business, which is a huge investment. This means your growth strategy, product sales, and customer communications will wrap around this tool. If you want to start simpler, mention how you plan on talking with fans and setting up merch tables at local shows.

Here, you'll see some examples of how you could write this section:

Our music business aims to market, sell, and grow by implementing a combination of online and offline strategies. Our marketing efforts will include targeted social media campaigns, SEO optimization for our website, and collaborations with music influencers and bloggers. We will also explore opportunities for live performances, partnerships with local venues, and utilizing traditional advertisement methods.

To drive sales, we will offer unique packages for our music services, including special promotions for first-time customers and loyalty rewards for returning clients. Our pricing strategy will be competitive while still maintaining the quality of our services.

In terms of customer retention, we will focus on delivering exceptional customer service and providing personalized experiences for our clients. Our unique selling proposition lies in our ability to offer customized music solutions tailored to different occasions and preferences.

Moving forward, our plans for growth and expansion include branching out to new markets and offering additional services such as music production and event management. We will also invest in building brand loyalty and expanding our customer base through strategic partnerships and collaborations within the music industry.

Why Should I Care About A Business Plan?

A business plan is a crucial tool for any musician or music industry professional looking to advance their career in the music industry. It serves as a roadmap for your career, helping you set goals, make strategic decisions, and stay on track for success.

One of the most significant benefits of having a business plan in the music industry is its ability to attract investors. A well-thought-out plan demonstrates to potential investors that you are serious about your music career and have a clear direction for success. It outlines your financial projections, marketing strategies, and potential for growth, making it more likely for investors to see the value in supporting your music endeavors.

Additionally, a business plan guides decision-making by providing a framework for evaluating opportunities and making informed choices. It forces you to consider all aspects of your music career, from marketing and promotion to touring and merchandising, ensuring that you have a comprehensive strategy in place.

Furthermore, a business plan helps define your brand identity and outline your unique selling points, target audience, and marketing message. This is crucial in the music industry, where standing out and connecting with fans is essential for success.

To learn more about how taxes can apply to a financial plan for your business, contact Augur CPA today .

This content is for informational purposes only and does not constitute legal, business, or tax advice. You should consult your own attorney, business advisor, or tax advisor regarding matters mentioned in this post. We take no responsibility for actions taken based on the information provided.

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business plan for a music management company

ProfitableVenture

Artiste Management Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Entertainment Sector » Music Sector

Are you about starting an artiste management business? If YES, here is a complete sample artiste management business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting an artiste management business. We also took it further by analyzing and drafting a sample artiste management business marketing plan template backed up by actionable guerrilla marketing ideas for artiste management businesses. So let’s proceed to the business planning section .

Do you know that with your good music and perhaps talent hunt skills, you can make millions from the entertainment industry without being an artiste? Without a doubt, you can make mega bucks from the entertainment industry by managing artistes or running an artiste management business.

As an artiste manager, you are expected to work on behalf of groups or artistes to promote their careers and run their business affairs. Basically, your job is to secure the best work for your clients, for the best fee. The truth is that an artiste management company can be started in any country of the world as long as you have access to a pool of talented artistes.

If you have made up your mind to start an artiste management company, you are expected to sit down and map out strategies on how to a raise startup capital, how to run the business, as well as how to make profits. That is basically what your business plan document should contain.

It might take you a month or so to come up with a workable business plan, however, you just have to do it. The truth is that your business plan is the blueprint with which you can successfully run your business and you are not expected to handle it with levity. It is always advisable to contract the writing of your business plan to professionals if you know that you can’t possibly do it yourself.

Here is a sample artiste management business plan template that can give you the needed direction to successfully write your your own.

A Sample Artiste Management Business Plan Template

1. industry overview.

Artiste management business is under the musical groups and artistes industry and this industry is composed of musicians, recording artistes and songwriters that produce music professionally, either in front of a live audience, in a recording studio or both.

Musicians in this industry may earn revenue from songwriting, producing or recording, but they primarily operate as performers. Please note that this industry excludes musical theater, opera and other professions involved in the creation of records, such as engineers.

If you take a closer look at the musical groups and artistes industry, you will realize that over the past decade, the industry has been subjected to a series of massive shakeups due to the popularity of mp3 players, music piracy, internet radio and online streaming.

The steady replacement of physical albums with digital songs has slashed revenue from recordings over the current five-year period, largely due to digital music selling at a lower price point. The transition to digital and a large drop in federal funding for the creative arts have caused industry revenue to grow minimally over the five years to 2017.

The Musical Groups and Artistes industry is indeed a thriving and viable business in most countries of the world. Statistics have it that in the united states of America alone, the industry generates over $6 billion annually from more than 54,723 registered and licensed big artiste management companies scattered all around the United States of America.

The industry is responsible for the employment of over 88,626 people. Experts project the music groups and artiste industry to grow at a 1.1 percent annual rate. No single establishment can boast of having a lion share of the available market in this industry.

A recent report published by IBISWorld shows that the Musical Groups and Artistes industry is in the mature phase of its life cycle. The industry experiences complete market acceptance, which is a key indicator of maturity, since music is a popular form of entertainment for most Americans.

The report indicated that over the 10 years to 2022, industry value added (IVA), a measure of the industry’s contribution to the overall economy, is expected to grow at an annualized rate of 1.9 percent. US GDP is forecast to grow at an annualized rate of 2.0 percent during the same time.

The industry’s relatively stable value added is further evidence that despite the changing nature of the industry, it remains a mature and stable segment of the economy

One good thing about starting an artiste management company business is that even if you decided to start it in the United States of America, your market will not be restricted to artistes in the U.S.; the world will be your target market, many thanks to the internet that has made the world a global village.

All you need to do is to strategically position your artiste management brand on the internet and you will be amazed at the rate people interested in signing under your management will be calling you from all parts of the world.

2. Executive Summary

Halley Bent® Artiste Management Company is a registered artiste management business that intends having a footprint in the music group and artiste management industry. We have been able to secure a well – positioned office facility in Colorado Boulevard, Pasadena – California.

Halley Bent® Artiste Management Company is going to engage in the management of various artistes. Part of our plans is to work towards becoming one of the leading artiste management companies in the whole of Pasadena – California and in the nearest future compete with the leaders in the artiste management line of business not only in the United States but also in the global stage.

We are quite aware that starting a standard artiste management business from the scratch requires reasonable capital base especially for the purchase of world – class studio equipment and promoting artistes under your management, which is why we have perfected plans for steady flow of cash from private investors who are interested in working with us.

We can confidently say that we have a robust financial standing and we are ready to take on any challenge that we encounter in the industry. Our workers are going to be selected from a pool of talented and highly creative people with eyes for spotting raw talents.

We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company and to compete with other players in the artiste management line of business in the United States and throughout the globe.

At Halley Bent® Artiste Management Company our client’s best interest comes first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Halley Bent® Artiste Management Company will be owned majorly by Halley Bent and his immediate family members. Halley Bent has a Degree: B.S. in Computer Engineering from the University of Illinois. Halley a native Californian who originally attended college to become a video game developer.

He later became senior manager at PayPal before launching Halley Bent® Artiste Management Company. Halley Bent is known for his management style: instead of an office, he sits at a desk among his employees.

3. Our Products and Services

Halley Bent® Artiste Management Company is going to offer varieties of services within the scope of the artiste industry in the United States of America. Our intention of starting our artiste management company is to make profits from the music industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offerings are listed below;

  • Rock, dance, country and pop bands writing, recording or performing
  • Independent musicians or vocalists writing, recording or performing
  • Jazz artistes and groups writing, recording or performing
  • Choir recording or performing
  • Musical groups (except theatrical musical groups) writing, recording or performing
  • Chamber musical groups and orchestras writing, recording or performing
  • Symphony orchestras writing, recording or performing
  • Classical musical groups writing, recording or performing

4. Our Mission and Vision Statement

  • Our vision is to become one of the top 10 artiste management companies in the United States of America.
  • Our mission is to build an artiste management company that will become the number one choice for music artistes when it comes to choosing an artiste management company.

Our Business Structure

The fact that we are set to compete with other leading artiste management companies in the United States of America means that we must build a business structure that can support our business goal. We will ensure that we will hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. Below is the business structure that we will build Halley Bent® Artiste Management Company;

  • Chief Executive Officer

Entertainment Lawyer/Legal Secretary

Artiste Manager

Sound/Recording Engineer

Admin and HR Manager

Marketing and Sales Executive

  • Customer Service Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Office:

  • ensures management’s effectiveness by employing, choosing, orientating, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
  • Accountable for fixing prices and signing business deals
  • Answerable to providing direction for the business
  • Fashions, interconnects, and implements the organization’s vision, mission, and verall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization
  • Responsible for drawing up contracts and other legal documents for the company.
  • Advises artistes and the organization accordingly before producing their music album or singles.
  • Produces information by transcribing, formatting, inputting, editing, retrieving, copying, and transmitting text, data, and graphics; coordinating case preparation.
  • Provides historical reference by developing and utilizing filing and retrieval systems; recording meeting discussions; maintaining transcripts; documenting and maintaining evidence.
  • Accountable for negotiating contracts and fees, finding and booking events and venues that match the artiste’s career strategy, advising on career decisions, publicity and promotion, helping them on career decisions such as which record producer to work with, or which songs to perform, and managing media relations on their behalf
  • Accountable for building a strong reputation for good client services, and attracting more top performers onto their books.
  • Represents a roster of artistes, and cultivate relationships with music industry decision makers on their behalf. They will negotiate deals, and support and guide their clients’ careers.
  • Keeps up to date with what’s happening in the industry, and spend a lot of time establishing and maintaining relationships, using contacts to source work for her clients.
  • Promotes clients’ work, and will often be involved in liaison during the music recording process. May also organize and negotiate contracts for release and publishing, and communicate with the press.
  • Handles any other responsibility as assigned by the Chief Executive Officer
  • In charge of handle any sound related job for the company; helps achieve certain specific sounds or feelings that match with the lyrics.
  • Responsible for mixing and producing beats and sounds for our clients; mix the songs into the final version for the music album.
  • Part of the team responsible for selecting the songs that will be promoted and the songs that will be sold as singles.
  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Defined job positions for recruitment and managing interviewing process
  • Carrirs out induction for new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Designs job descriptions with KPI to drive performance management for clients
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Facilitates and coordinate strategic sessions
  • Works directly with clients in a non-advising capacity, such as answering questions, scheduling appointments and making sure all training concerns are properly taken care off
  • Oversees the smooth running of the daily office activities
  • Once the album is ready, then the marketing team will go out to market and promote the album
  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies business opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of music projects.
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients and music artistes
  • Develops, executes and evaluates new plans for expanding sales
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company
  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Accountable for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executive

  • Ensures that all contacts with clients (e-mail, walk-In centre, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

6. SWOT Analysis

Halley Bent® Artiste Management Company engaged the services of a core professional in the area of consulting and business structuring to assist the organization in building a standard artiste management company that can favorably compete with other leading music production companies in the United States of America.

Part of what the business consultant did was to work with the management of the company in conducting a SWOT analysis for Halley Bent® Artiste Management Company. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Halley Bent® Artiste Management Company;

Our core strength lies in the power of our team and the location of our business. We have a team that can go all the way to give our clients value for their money; a team that can effectively manage artistes to become celebrities. We are well positioned and we know we will attract loads of clients from the first day we open our company for business.

As a new artiste management company, it might take some time for our organization to break into the market and attract some well – established music artistes to sign under our label; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.

  • Opportunities:

The opportunities in the artiste industry are massive and we are ready to take advantage of any opportunity that comes our way.

Technology and the internet which of course is a major tool for the advancement and gains achieved in the music group and artiste industry can also pose a threat to the industry. The truth is that with the advancement of technology, it is now easier for artistes to promote their works especially via social media platforms.

So also, just like any other business, one of the major threats that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new music production company in same location where our target market exists and who may want to adopt same Business model like us.

7. MARKET ANALYSIS

  • Market Trends

Entrepreneurs that are venturing into the artiste management industry are coming in with creativity and good business skills. The fact that revenue is nose – diving in the industry does not in a way stop some artiste management companies from declaring profits year in year out.

The trend in the industry is that most music production companies are trying as much as possible to recreate themselves on a regular basis and also to be on top of their game.

8. Our Target Market

When it comes to artiste management business, there are no exemptions to who you can market your services to. There are loads of people (music artiste and other performing artiste) out there who are interested in working under a well – structured artiste management company.

Over and above, our target market as an artiste management company cuts across music artistes and other performing artistes of different class and from all walks of life.

In view of that, we have created strategies that will enable us reach out to various clients within our target market. We have conducted our market research and survey and we will ensure that our artiste management company is well accepted in the marketplace.

Our Competitive Advantage

We are mindful of the fact that there are stiffer competitions in the industry in the United States of America, hence we have been able to hire some of the best business developers to handle our sales and marketing.

Halley Bent® Artiste Management Company is launching a standard artiste management company that will indeed become the preferred choice for music artistes and other performing artistes in and around Pasadena – California and other cities all across the world.

Another competitive advantage for Halley Bent® Artiste Management Company is the quality and robust wealth of experience of its management team. The management team comprises of professionals who have worked with some of the leading international brand in the music groups and artiste management industry.

Our unique style of attracting gifted artistes also counts towards our advantage especially when it comes to competing with other artiste management companies within the same category that we operate.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

  • Sources of Income

Halley Bent® Artiste Management Company is established with the aim of maximizing profits in the music groups and artiste industry and we are going to go all the way to ensure that we do all it takes to attract music artistes and other performing artiste that will sign under our brand.

Halley Bent® Artiste Management Company will generate income by offering the following services;

  • Choirs recording or performing

10. Sales Forecast

One thing is certain when it comes to music; music never dies and the demand for good music will continue to grow. This goes to show that any artiste management company that is known to always produce good music will continue to attract talented music artistes and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in the U.S. and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base beyond Pasadena – California to other cities in the U.S. and even the global market.

We have been able to critically examine the artiste management market and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Pasadena – California.

  • First Year: $120,000
  • Second Year: $350,000
  • Third Year: $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Marketing Strategy and Sales Strategy

Artiste management business is not a business that you have to retail products which is why we must do all we can to maximize any opportunity that comes our way.

Our sales and marketing team will be recruited base on their vast experience in the music industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent artiste and management style speaks for us in the market place; we want to build a standard artiste management company that will leverage on word of mouth advertisement from satisfied clients/artistes.

Our business goal is to grow our artiste management company to become one of the top 10 artiste management companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the U.S but in the world stage as well.

Halley Bent® Artiste Management Company is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to music artistes, performing artistes and key stake holders in the music industry in Pasadena -California and other parts of the U.S.
  • Advertise our business in relevant entertainment magazines, newspapers, TV and radio stations.
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local talent hunts, music expos, seminars, and concerts et al
  • Leverage on the internet to promote our business
  • Engage in direct marketing approach
  • Encourage word of mouth marketing from our loyal and satisfied clients

11. Publicity and Advertising Strategy

We have been able to work with a brand and publicity specialist to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market. We are set to take the music groups and artiste management industry by storm which is why we have made provisions for effective publicity and advertisement of our artiste management company.

Below are the platforms we intend to leverage on to promote and advertise our artiste management company;

  • Place adverts on both print and electronic media platforms
  • Sponsor relevant TV shows and radio programs
  • Maximize our official website to promote our business
  • Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, 4Share, Google+ and other platforms (music online forums) to promote our business.
  • Offer Pro Bono services as part of our community social responsibility
  • Ensure that our we position our banners and billboards in strategic positions all around Pasadena – CA
  • Brand all our official cars / buses and ensure that our trademark label is boldly printed in all our music album covers and CDs et al.

12. Our Pricing Strategy

When it comes to the artiste management line of business, you may not automatically start making money, as a matter of fact, you will be expected to invest your money on an artiste, you are expected to groom the artiste until he or she becomes popular and well – sought out for. After that, you will be able to agree on percentage of the fee paid to the artiste to perform.

At Halley Bent® Artiste Management Company we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to upcoming artistes who engage our services.

  • Payment Options

The payment policy adopted by Halley Bent® Artiste Management Company is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Halley Bent® Artiste Management Company will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via credit cards/Point of Sale Machines (POS Machines)
  • Payment via online bank transfer
  • Payment via check
  • Payment via mobile money transfer
  • Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to pay for our services.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget for achieving our aim of establishing a standard and world class company. Essentially, these are the areas we are looking towards spending our startup capital on;

  • The total fee for registering the business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
  • Marketing promotion expenses for the grand opening of Halley Bent® Artiste Management Company in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580 .
  • The total cost for hiring business consultant – $2,500.
  • The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
  • The cost for payment of lease for a small but standard office facility for 24 months – $150,000
  • Cost for remodeling the office – $20,000
  • The amount required for the purchase of musical related equipment- $40,000
  • Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
  • Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $250,000
  • The cost for start-up inventory – $10,000
  • The cost for store equipment (cash register, security, ventilation, signage) – $13,750
  • The cost of purchase and installation of CCTVs – $5,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
  • The cost of launching a website – $600
  • The cost of our opening party – $5,000
  • Miscellaneous – $5,000

We would need an estimate of $300,000 to successfully set up our artiste management company in Pasadena – California.

Generating Startup Capital for Halley Bent® Artiste Management Company

Halley Bent® Artiste Management Company is a family business that is solely owned and financed by Halley Bent and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the Bank

N.B: We have been able to generate about $100,000 (Personal savings $60,000 and soft loan from family members $40,000 ) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

It is easier for businesses to survive when they have steady flow of business deals/customers patronizing their products and services. We are aware of this which is why we have decided to offer a wide range of artiste management services and other related services and also to work with both music artistes, and other performing artistes.

We know that if we continue to manage artiste who are great performers or who are known to release hit songs back to back, then there will be steady flow of income for the organization.

Our key sustainability and expansion strategy is to ensure that we only hire competent employees, create a conducive working environment and employee benefits for our staff members. We know that if we implement our business strategies, we will grow our artiste management business beyond Pasadena – California to other states in the United States of America in record time.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Renting of Office Facility: Completed
  • Building of Music Studio: In Progress
  • Intellectual Property Protection and Trademark: Completed
  • Opening of Corporate Bank Accounts various banks in the United States: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting Feasibility Studies: Completed
  • Generating part of the startup capital from the founder: Completed
  • Applications for Loan from our Bankers: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the Needed studio / musical gadgets, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress

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BusinessPlanTemplate.com - The World's Leading Business Plan Template Directory

Music Business Plan Template [Updated 2024]

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Music Business Plan

If you want to start a music business or expand your current business, you need a business plan.

The following business plan template gives you the key elements to include in a winning music business plan. It can be used to create a music production company business plan, a business plan for a music artist, or business plans for a music teacher and/or music management.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Below are links to each of the key sections of a successful music business plan. Once you create your plan, download it to PDF to show banks and investors.

I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Music Business Plan Outline

generic business plan template

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How To Start An Artist Management Company

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Are You Sure You Want To Start An Artist Management Company?

Being an artist manager is arguably one of the most exciting careers someone can have. Every day is different, it’s challenging, it’s rewarding, you get to witness the creative process, you get to help make someone’s dreams come true (or die trying), you get to travel a lot, you get to spend your time in recording studios, performance venues, attend festivals, and heck you get to drink on the job.

But, it’s not all mashed potatoes and gravy all the time so before we get into HOW to start an artist management company, I’m here to give you a little more insight on some challenges to overcome BEFORE starting an artist management company as well.

Warning, reality check ahead.

4 things to come to terms with before starting an artist management company

1. you have to be patient.

Every person I know with a successful company didn’t just start it up with tons of clients making money right off the hop. Unlike other industries or types of businesses, with artist management you can’t just register a business name, get a website, and start advertising your services. You don’t have an artist management company without artists. Plus, it takes a LONG … time … to build.

Most artist managers keep their full or part-time jobs for a long time until their artist roster is making enough money that they can quit. Depending on your artists success, this could happen quickly, or it may never happen. It all depends on what’s going on with your artist and if they’re making enough money. As their manager this lies heavily on you. If you have or find the right connections, and if your artist is talented enough (along with many other factors), you could be a full time artist manager before you know it.

I know a guy who quit his full-time salaried day job to start an artist management company with a couple of indie bands. A year later, he made absolutely no money, and lost 50% of his artist roster. Another year after that, he lost 100% of his roster and left the industry. Which brings me to my next point….

2. Have a back-up basket and carton of eggs

Sure, put all your eggs in one basket. But what if that basket breaks? You best be makin’ sure you’ve got another basket of eggs waiting for you. Relationships break. Artist managers loose artists regularly. Managers quit. Artists fire their managers. If you’re only managing one artist, make sure you have other sources of income coming in. Or make sure you have an ironclad agreement in place that will ensure you still get paid even if the relationship breaks. If you’re quitting your day-job to manage 3 acts you just signed at once, make sure you know exactly how much money they make, how much money you’ll make, and exactly when they’re going to be paying you. Or, have a massive reserve of money waiting in case they don’t.

Otherwise, you ain’t eatin’ no eggs.

3. Finding clients (artists) is like finding a spouse

Being an artist manager is like being in a marriage. It’s one of the closest relationships you’ll have next to your family members, and because of that, these relationships also take a long time to build. Sure there are some cases where an artist signs with a manager when they barely know each other (I’ve done it!). And sure there are some cases where people get married after 3 months of knowing each other. The reality is, though, that it’s a relationship built on mutual understanding, trust and loyalty, and generally that takes some time to build. So be patient in this arena too.

4. A company runs on money

We work in an industry that prides itself on working for the love of it, and not for money; especially artists. But the reality is you don’t have a COMPANY without money. This is business. The artist is a business. If you’re looking to start your own business, it’s always recommended that you draft an artist management company business plan (which we give you for free when you subscribe to our newsletter ). If you’re not that well versed in the industry, it’s a good idea to at least TRY to work through a business plan so that you get a better idea of where your money is going to be coming from.

Starting Your Own Artist Management Company vs. Getting A Job At An Artist Management Company

When you start your own artist management company, you can choose which artists you work with (if they’re willing to work with you in the first place), and keep the full management commission. When you work under someone else’s management company, there are a few ways to go about it.

  • You could be hired on as an associate manager (or day-to-day manager) to an existing company roster on a salary (or a commission if you’re lucky)
  • Or, you could be asked to join the management team and bring on your own roster

In these two cases, your commission rate would be less than if you were the sole manager of an artist. However, if you’re working for a company, they likely already have a good track record and therefore the commission revenue could be higher. In all cases, it really depends on what works for you and what opportunities come to your door (or what you bang down doors for).

Questions to ask yourself:

  • Would you rather have support from an existing company?
  • Would you rather bust your butt starting from scratch?
  • Would you rather be an entrepreneur?
  • Do you have the business acumen and work ethic to be an entrepreneur?
  • Would you rather choose the artists you work with?
  • Do you have the credibility or ability to sign an artist yourself?
  • Would you rather be in control?
  • Would you rather share responsibilities with a partner?
  • Should you try to work for another company to get experience first?

Now that we’ve got that out of the way, still want to learn how to start an artist management company?

Key Ingredients for Success in Starting Your Own Artist Management Company

1. people skills.

The music business is a relationship business. You have to have your head on your shoulders and be able to network, make friends, and business colleagues; it is absolutely critical to success. Furthermore, it is the maintaining of these relationships that counts. The music business is a very small world, and you don’t want to go around burning bridges. It WILL come back to bite you. This goes for artists and my business-minded people. It’s imperative to be an honest (sometimes brutally honest), yet trusted person. Understanding people (especially your artist!!) is absolutely key.

Susan de Cartier of Starfish Entertainment (Blue Rodeo) says,

This is a relationship business and networking, negotiating, etc. are critical to success.  Plus, it’s not just creating relationships, it is maintaining them.

2. Business and financial management skills

Running a management company is running a business, and an artist manager must understand that you need to have the same management skills that any other business owner has, which is heavily reliant on financial and operational know-how. A business isn’t a business without revenue, so as a manager it’s your job to get out there and bring in revenue for your artists, and in turn, yourself. Make sure they’re performing live, touring, selling records, try to get them radio airplay if their songs fit, try to get a publishing deal (for the songwriters), get their songs in TV and film, set up YouTube for ads, and do further research on various revenue streams. Our Artist Management Toolkit has resources on revenue streams.

With all that being said, I’m a true believer that most things in life can be learned . So if you’re feeling weak in the area of business and financial skills, get-to-learnin’!

3. Work ethic and drive

You must have a very strong work ethic and a high level of responsibility. You’re managing someone else’s entire career (your artists) and must take that responsibility seriously. This is a fun business but it is a business, so you need to have the utmost work ethic and drive to keep on going when times get tough.   

4. Dedication to your artists

Managers dedicate their lives to their artists. Yes, not just their careers, their lives. Your main reason for working with artists in the first place must be for the love of the artist and their artistry. You have to put your artists ahead of yourself. You have to put their needs ahead of your needs. You must understand that you are dealing with other people’s lives and other people’s money.

5. Creative problem solving and fast decision makin g

A manager should be able to calmly jump through hoops on a daily basis. There are going to be problems that arise every day. They could be good problems or bad problems, but you’re going to need to figure out how to solve them fast, without dwelling. The manager is the centre of the wheel, if you’re not solving problems fast, the wheel won’t roll forward.

6. Patience

I talk about being patient quite a bit on this blog, but I’ll say it over and over again. Be. Patient.

It takes years for artists to perfect their craft. And it’ll take years for you to perfect your business. You could be coming into your artist’s life at a time when their craft isn’t quite ready to become a business yet, or they may be in between album cycles and are creating right now. So you have to ask yourself if you’re ready to join them in the developing phase, or creation phase of their career. In both of these phases, you’ll be on the sidelines waiting with no income coming in unless they are constantly performing live. Or, let’s say you start managing them at a time where the artist is ready to release an album and you’re sure it’s a hit song or a few hit songs on it and that there’s no creative development needed. Even if that album or one of the singles does become a hit, you still won’t see any revenue for at least 10-12 months later because royalties take time to come in. If you don’t have a hit you might not see much revenue at all (from album sales). Again, this is a long-term business. Don’t expect to pop up overnight (both virally and financially).

7. Knowledge

It doesn’t have to be knowledge you’ve acquired from formal education such as college or university, but you need to educate yourself. This can be done through experience, from reading this website through and through, from attending conferences, from a mentor, from reading books, and many other ways. Artist Managers oversee all areas of the business so the sooner you get knowledgeable in those areas the sooner you can succeed. The Music Business For Artist Managers and Self-Managed Artists: All You Need To Know To Get Started, Get Noticed, and Get Signe d explains all the main types of people you’ll be working with as a manager, what they do, how to wear their hats until they are ready to work with you and your artist, how to contact them, how to get noticed by them, and how to get ‘signed’ by them.

“They” include over 30 music industry experts in the areas of:

  • Tour Managers
  • Talent Buyers
  • Record Label A&R
  • Radio Promoters
  • Radio Station Programmers
  • Music Supervisors

Steps To Starting An Artist Management Company

1. Build Your Artist Roster

Depending on where you’re at in your journey to starting your own artist management company, you may or may not have an artist roster (clients) yet. Just like any company, you don’t have an artist management company without any clients so if you don’t manage any artists yet get out there and start looking because it could take a while. You could see 100 bands and only fall in love with one of them, or you could go see a band tomorrow and fall in love with them. The important piece to note here is that you need to ‘love’ them, and they need to love and trust you to do business on their behalf. As mentioned above, you dedicate your life to this person/these people (aside from your family), and the best motivating factor for dedication is love. You need to love their music, their songs, their vibes, and them as individuals.

The good news is, there are PLENTY of ways to find talent to manage. The hard part is finding the one , or the next one . Read  12 Ways To Discover And Sign Artists To Management (True Stories)  to find out how some top managers discovered their artists. Some of which have been managing for 15-25 years.

2. Sign A Contract

Yes, a lot of business in the music industry is done over a handshake, but it’s just better to cover yourself by signing an agreement. You can make the agreement as simple and as easy as you’d like. Just get something, anything, in writing, that you’re earning a certain commission as so-and-so’s sole worldwide manager, and save it in a safe place. Here is an article explaining all the different line items that are included in a standard long-form artist management agreement .

3. Don’t Quit Your Day Job Just Yet

DO NOT quit your day job to become an independent manager…. yet. If you’re reading this article I’m assuming it’s because you’re independent. Keep your day-job, or contracts, or part-time job, or whatever else you’re doing to earn a living, until your artists are making enough money to replace it. Is your current roster, or prospective roster making any money yet?

Before you start managing someone you need to find out how much money they are making, so that you can decide if your 15-20% cut of that is worth it for you. If they aren’t earning enough money yet, then you need to be willing to dedicate time and energy as a longer term investment in order to gain profit later. Find ways to earn money for your artist, which will in turn earn money for you. The average person makes, what, $40,000 per year? If you want to quit your day job and earn that same amount, and you’re on a 20% commission rate, your artist needs to be making over $200,000 per year. Or, you manage 2 artists making $100,000 each, and so on. Still, let’s say you’re managing one artist, they make $400,000 in one year, and then they decide to go off the radar and not perform or release anything for another 2 years or more. This is where you need to have other sources of income. If it’s not a job, than it’s multiple artists that are earning well.

4. Draft an Artist Management Company Business Plan

5. make a name for yourself.

Literally and figuratively. Now that you have a roster and a plan, come up with an artist management company name and register it with the government. This should also allow you to open a bank account under your business name. It is important to keep business and personal separate. Different managers have distinctive artist management methods. Think about what you stand for as a manager. Don’t be afraid to be yourself, while you may also want to think of ways to brand yourself to stand out. If artists do it, why can’t you? Get business cards, a website, a new email, a Facebook page, Instagram account, Twitter account, and any other means to promote yourself as a professional manager, which is also another means to promote your artists. And, NETWORK. Get our there and meet people as much as you possibly can. Find out what they do and show an interest.

6. Get Organized

You have to be the one that’s the most organized since you’re the one “organizing” the artists career. Have all the right documentation and keep track of all your business functions appropriately.If you’re not the most organized person yourself, then hire an intern or a paid staff person who is strong on the organizational side as soon as possible.

We here at SBM we put together over 100 of the most important systems, plans, templates and guides you need to run the day-to-day operations of your management business .

7. Work With an Entertainment Accountant

Now that you have all the documents you need to be organized, you’ll want to discuss accounting procedures with your accountant so that you can organize your financial documents effectively. I also recommend finding an accountant that works specifically in the entertainment business, as there is a whole different set of tax write-offs available to you (depending on what country you’re in).

8. Hire an Entertainment Lawyer

You’ll want to find and hire an entertainment attorney to aid you with all contracts you will have to deal with when doing business on behalf of your artist, with record labels, booking agencies, publishers, etc. Entertainment law is extremely specialized, so be absolutely sure to hire an entertainment lawyer, not a lawyer from any other specialization.

To summarize, if you’re considering starting an artist management company, you’ll want to get the following items in place: artists to manage, a lawyer, an accountant, internal organization tools, a business plan, management contracts; while also ensuring that you’re patient, dedicated, brand yourself and be yourself, constantly develop your knowledge (business and music business) and network all the time while developing your people skills.

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Please send me your Artist Management business plan template.

Thank you and Merry Christmas

Hi Lincoln! Did you not receive it when you subscribed? Let me know if it still has yet to arrive in your inbox and I will email it to you. Jamie

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Hello, i haven’t received my guide either

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I am a student going to college for Music Management.. The firm I want to Intern with or perhaps be hired into asked me flat out. “What can you do for the company, and our clients.” And ever sense then I’ve been walking around lost in thought. What can I, an 18 year old music enthusiast, do for such a company? They also mentioned that certification to them was nothing.. They want skill. how do I answer that question. I’m stumped. I can plan things down to the smallest detail but that’s about it. I’m just a talentless individual I love with the industry..

Planning things down to the smallest detail, being in love with the industry, and being a music enthusiast is exactly what you can do for any company or any artist. Passion and attention to detail are HUGE assets to anyone. You can tell your next potential employer that you have the same vision/mission/passions as them and will organize anything they need organized without mistakes. All the best. Ps. Don’t ever call yourself ‘talentless’ again! Everyone is talented in some way. xo.

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Wow! I love your charm and your kindness int his response! Everything about this site has been A1 so far! Amazing content from a seemingly amazing person!

I currently model and work an 8-5 job, but I’m starting to manage my brother’s music career! Any advice on managing family members/ maintaining both a business and personal relationship when the music industry could potentially strain our siblingship? Thank you!!

Thank you kindly Tayo! I would say the same thing for managing a brother as I would for managing anyone – it’s all about communication. Be very, VERY, open and honest while respecting the other person dreams/wishes/feelings. If there’s an issue, don’t let it brew. Get it out on the table as quickly as possible and talk about it calmly. Always seek to understand the other person before jumping to conclusions. Also, there will likely be no separating the personal and business relationship anymore. Firstly, because management is a 24/7 job and it’s difficuly to separate business/personal in this kind of relationship, and second, because he’s your brother. So you’ll need to get comfortable talking about business and music and plans 24/7! Hope this helps. I’d love to hear how you’re doing in a year from now! Cheers. Jamie

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@Audrey if certification doesn’t mean anything to them then you need to pick a different company it would be a red flag to me if any company told me my hard work and degree didn’t mean anything to them you worked hard to get where your at never except anyone telling you that your certifications dont mean anything

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i just want to learn how to manage artsts as im about to open a company to manage artists so i really need any help and piece of info i could get

Hi Phillip,

The best place to start is right here on our blog.

Make sure you download your free startup kit right here: smartbandmanagement.com/free.

And check out our brand new YouTube channel “Smartist University”: https://www.youtube.com/channel/UCOaVNsblh9L8QGE65xW8mOw?sub_confirmation=1

Cheers! Jamie

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Please i need your Artist Management business plan Table, I want to also learn how to manage artist.

Hi Henry, The Business Plan is for free – all you have to do is subscribe! smartbandmanagement.com/subscribe. The Management Toolkit however is a paid product and that’s available at smartbandmanagement.com/toolkit. Cheers!

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Jaime, thanks for the information you provided I’m trying to get myself into the music management business and I need to learn as much as I can so I can be successful. I’m also in school for web and graphic design. I want to craft my management company online and start off at working with University music groups and build my rosters and learn as I go. I’m now a subscriber An plan on keeping I touch with you to keep up with the latest update. Thank you..

Hi Randy! That sounds like a great idea! Best of luck and stay in touch.

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Just want to say thank you for this wonderful information. It was truly helpful and I appreciate it very much.

Thank you Kai!

' src=

I need your Artist Management business plan Table, I want to learn how to manage artist as well.

In order to receive the free plan, visit this page and enter your email. It will be sent to you right away. https://smartistu.com/subscribe

' src=

Would you please send me your Artist Management business plan template?

Thank you Best Anne

' src=

Hi Jamie, ever since i bumped into this article, i have set my eyes without moving or being distracted. As i am writing, i am a dope music producer and i just got an artist to manage. I have never managed before, but i so beleive i can do it. So, Jamie Johnson Thank you so much for having that time to put a word in everybody’s comment . I hope to get you give me a close advice in this challenge being that i am from Nigeria, and the industry from there may vary from what we have here.

CHILLINGS @icebeatz_

Thank you Emana, happy to help! If you haven’t yet, we’ve got tons of extra free advice and free guides available for download over at smartbandmanagement.com/free. Check it out! Cheers.

' src=

Hello, Thank you for sharing. Please send me your Artist Management business plan template.

Best, Earl M. Bynum, Jr.

' src=

Hi, thanks for sharing, this article is the most comforting piece of information I have read in quite while thanking you all these details.

Thank you Marcian!

' src=

I enjoyed this very much and feel like you can be our mentor. You are bright and i loved how you explained everything on here. I also am starting up and I want to recruit those who have the real and excellent talent and show them off to the world. I am going to favorite this page just because it’s well explained and you put every thought into it.

Thank you Jose! All the best.

' src=

Lots of great info for me to really get going in the artist management space. I have two artist with real potential in the industry. If I keep preparing myself and put us in the right place to make sure we win, it’s not a matter of if but a matter of when. Thank you so much, I look forward to possibly working with you in the future.

Thanks David! Keep grinding!

' src=

hey!! you guys are amazing and i feel blessed to know about you, i subscribed but didnt receive the free kitbits yet, how do i go about it?

Hello Jefferson! Thank you for the kind words and for subscribing! Just a quick question to help us figure out why you haven’t received them – did you check your email for a confirmation email first? You must confirm your subscription first. Secondly, if you’re on gmail, did you check your promotions folder? Or junk? If you’ve done all of these things, please email [email protected] and we will get them over to you ASAP. Thank you!

' src=

Thanks for the wonderful piece. Please I did not receive the Artiste Management Business Plan though I have subscribed via my e-mail.

Do you minding sending it?

' src=

Hi, I am currently thinking of being an artist manager because,

1. In Myanmar, Artists handle most of the things by themselves and they end up getting into stuffs they don t know about. meaning that they JUST sign contracts,deals and stuffs without knowing the details.

2. I have good relations with artists from the industry. Personally and like you said, I do maintain them. they also sometimes come up to me for advice and other problems i can help with.

3. I have worked in an entertainment company before and knows how events, live shows, tours,and promotion shows work. even if not detailed i am familiar with the work.

4. I’m currently also working as a YouTube Channel Manager. and I have to deal mostly with copyright issues and promoting their videos or songs and also maintaining relationships.

I think i still have a lot to learn and i feel that I’m not ready yet I don’t really know. But I want to do it because I feel that they are in need of artist management. But the thing is, I don’t know where to start and like literately where to start.

Should I just contact one of the artist i personally know and then ask them if i can be their manager? and then start involving myself with their activities for a couple of days? get to know their flow and schedule then start adding things up for their improvement? I do know i need a contract for this and i don’t know where to get it? and because Im like a friend to the artist will it be good to sign a contract for it? Do I First start with smaller artist or should i just go directly for A list artist?

Please help me. 🙂

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Get Going → Events & Entertainment

A step-by-step guide to developing a music business plan

June 17, 2021

Musician working in the studio

Why you need a music business plan

Where to start, the main components of a music business plan, the importance of multiple income streams, subscribe to greenlight by thimble..

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Making a living in the music business is the ultimate dream of every serious musician. But out of the countless individuals with a passion for music, only a select few will make a profitable business out of it. That doesn’t mean reaching your goals is impossible. If you want to earn reliable income from your music career, you need to treat it like any other business. That means making a detailed blueprint that will take you from passionate hobbyist to successful professional. This step-by-step guide to developing a music business plan will set you on the right path.

Whether your goal is to have a career as a professional musician, recording artist, producer, or music teacher, documenting the path you’ll take with a music business plan will be helpful to your cause. Your business plan outlines your goals, identifies the practical methods you’ll take to achieve them, and lists the resources you have and will need.

Not only will a concrete business plan keep you on course, it will also demonstrate your credibility in the eyes of others. Potential clients and business partners will see you as a professional and not another starving artist. If you ever need to take out a business loan or raise money for investors, a business plan is a must-have.

Crafting your music business plan isn’t something you can do in one sitting. You’ll need more than an afternoon to get this right. Take your time, bite off piece-by-piece, and chew your thoughts over thoroughly.

Our first piece of advice is as old as time:  know thyself.

You need some clarity of purpose before you can craft a useful music business plan. Ask yourself:

  • Who is my audience?
  • What is my ultimate goal?
  • Why do I want to do this?

Having this understanding will make it easier for you to explain your vision to others and convey your enthusiasm. It will also establish the framework for your music business. This step is crucial if you’ll need people to buy in to help you reach your goals.

The content of your music business plan will vary depending upon whether you’re aiming to start a music school, be a producer, or work as an artist. But the fundamental components are the same either way. Here’s what you’ll need:

  • Mission Statement
  • Executive Summary
  • Audience Analysis
  • SWOT Analysis
  • Marketing Plan
  • Financial Considerations

Let’s look at each of these in turn.

Mission Statement:

This can be as short as a few sentences, as long as it adequately describes who you are as an artist or a musical entrepreneur and what you’re trying to accomplish. While this might sound simple, think things through a bit before you try to draft your statement. Everything that follows here will hinge upon it.

Executive Summary:

The executive summary is a one-page synopsis of your plan. It should include an introduction as well as a description of your endeavors. Details about the funding you already have and what you’ll need in addition to a brief accounting of your plans for putting all of it into play are important too.

Most experts recommend saving the drafting of this part for last. It’s essentially a digest of all the other parts of your plan. Doing it last allows you to draw upon the information you’ve drafted for all of the other steps.

Audience Analysis: 

Here’s where you’ll demonstrate your understanding of your target audience. If you’re already performing, teaching, or producing on the side, think about what traits the people who follow you have in common.

If you’re just getting started, find someone doing what you want to do whose style and circumstances are similar to yours, and analyze their target market. Create a demographic sketch of your target audience based on gender, age, location, musical tastes and favorite venues.

Strengths, Weaknesses, Opportunities & Threats:

Think about the qualities that make you unique. List everything that comes to mind, from technical mastery and creative spark to teaching older demographics and networking. Your skills might not seem extraordinary on an individual level, but combine all your best qualities and you’ll find there isn’t anyone quite like you on the market.

Don’t forget about your weaknesses. Identity these not as qualities to promote, but as areas to work on in the future. Being aware of your shortcomings will also help guide your decision on potential business partners in the future. Let your inner critic loose, but realize that this is an exercise in personal growth, not tearing yourself down.

Had enough reflecting? Let’s take a look at the marketplace. Think about potential gaps in the industry you can exploit. Perhaps your competitors are overlooking a key value and you see a way to provide it both efficiently and effectively. These are your opportunities.

Threats could include technological shifts, cultural changes, the emergence of new artists, competition, and new trends. The music world moves fast, and today’s hot act can end up as yesterday’s news before your can say “more cowbell!” Brainstorm any roadblocks you picture yourself facing over the next few years and strategies you can use to overcome them.

Marketing plan:

Your marketing plan will detail how you’ll spread the word about yourself. Consider how much money you can reasonably invest into marketing and work out how you’ll spend it to reach as many of the right people as possible. Think about how you’ll grow your online presence—including social media, a press kit, and publicity materials such as a logo and photography.

Get a full account of your current cash flow situation. List how much capital you currently have and estimate how much it’ll take to get your operation up and running. When in doubt, overestimate. Studio time, engineering talent, transportation, legal fee, copyrights and trademarks are all important considerations when projecting your budget.

Measuring your progress:

At what intervals will you go over the financials to see how you’re advancing? What are the milestones by which you’ll mark your achievements?

You’ll also need a method for measuring your impact on the market in terms of the reputation you build. Social media outlets provide analytical tools to help you track these metrics. They can also help you pinpoint the demographics of your audience.

Establishing your key performance indicators (KPIs) can help you set the standards by which you will gauge your success. Sharing this information with others makes you accountable because they can look at your projections and see how much progress you’ve made toward achieving them.

Summarizing your music business plan

As we mentioned above, once you have all of these areas covered, you can then condense the information each section contains to create your executive summary. After all, how will you know what to put in it until you’ve examined all of these other areas first?

Success in the music industry takes a lot of work and a little luck, but you can stack the deck in your favor by building multiple income streams. That way, if one area slows down, you’ll have another one in play to keep you rolling until the next opportunity presents itself. Revisit your strengths and opportunities and start brainstorming ideas. If you get stuck, here’s a quick list to get you started:

Give music lessons. Chances are if you’ve got the chops to play paid gigs, you’ve got enough skills to pass on to some novice students. Giving music lessons can be a great way to add some extra recurring income.

Start a YouTube channel. With over 2 billion active users, YouTube might just be your biggest source of untapped attention and potential. 1 The platform offers users a chance to learn or be entertained, and as a musician you’re well-positioned to offer both. You could upload instructional videos or footage of yourself performing. You’ll get to keep a portion of any ad revenue your videos make. And if the right person sees your content, it could open the doors to even greater opportunities.

Explore the marketing world. If composition is your thing, you might be overlooking a potentially huge money-maker—marketing and advertising. Brands are in constant need of good video content to market their products, and those videos need music to truly capture attention. If you’ve got a knack for putting together atmospheric instrumentals, creating music for ads could seriously help stabilize your income.

Open your own studio. If you have the capital to invest and live in an area underserved by recording studios, you might want to consider opening your own. While you’re not using it for your own projects, you can rent it out to other local musicians and producers. If there’s enough demand, you could cover the costs of equipment and rent and even have a little profit left over.

Explore session work. Sure, your band is your baby, but if you’ve got time on your hands and musical versatility to boot, why not offer your services as a session musician? Session work is an effective way to boost your income, make new connections and get your name out there as a legit professional. If an artist is truly enamoured with your work, they could invite you to join them on tour.

Another important consideration in your music business plan is protecting your livelihood from the consequences of unintentional accidents. General liability insurance is key to helping you stay focused on your business. Carrying a policy also demonstrates to potential clients that you are a serious professional — whether you’re a musician, DJ , or another kind of entrepreneur in the entertainment industry.

  • Hootsuite. 25 YouTube Statistics that May Surprise You: 2021 Edition .

Written on April 19, 2021 | Last updated: June 17, 2021

Our editorial content is intended for informational purposes only and is not written by a licensed insurance agent. Terms and conditions for rate and coverage may vary by class of business and state.

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Tip Jar: How To Write A Music Business Plan

TIPjar

The biggest mistake artists make when it comes to procuring financing for their music ventures is the lack of a business plan. Artists and musicians must understand that music is a business and should run like one. Once you’ve decided that music is your business, you must set aside time to write out a solid business plan if you want to grow as a business, attract investors, increase your fan base, market and sell music or launch a crowdfunding campaign.  Here are the essential elements you’ll need to begin your process of establishing a business plan:

1. Write it down (the rough draft)

Whether it’s temporarily written down on a napkin or typed in Microsoft Office, you need to get your plan from out of your head. Start by considering where you are currently in your music career and where you want to be. Give yourself a realistic time frame and work backwards, citing the steps and resources required to reach each milestone in your plan.

2. Take yourself seriously

This is not a joking matter. If you don’t take yourself seriously, no one else will, so include pertinent information regarding your music business. Before you complete your plan, make sure you’ve captured the essence of your music business with the same passion you have for your music.

3. Before you dive in headfirst

Creating a music business plan can be an overwhelming task if you allow it to be. Remember, the only way to eat an elephant is one spoonful at a time, so take a moment to breathe and gather your thoughts.

4. Taking personal and professional inventory

If you have been in the music business for at least a year, you should have a basic idea how a music business operates. In fact, you are most likely implementing core business principles and practices at your current level. Now take it a step further by conducting a SWOT analysis.

A SWOT analysis is a simple assessment of your personal or professional Strengths, Weaknesses, Opportunities and Threats as they apply to your music business. Begin by taking a piece of paper and folding it into four equal squares. At the top of each square going clockwise, write each component of the SWOT analysis in its own square. Then create a bulleted list of all the information regarding your business in the corresponding squares. Once completed, you will have the framework to create a formal business plan.

5. Understand what should be included in your plan

At a minimum, your plan should include the following:

A ) Executive Summary - An overview of your company, including an executive summary, mission statement, goals and objectives and a brief artist history.

B ) Market Analysis - Here you will analyze the current music market, with special focus on your genre of music. Include opportunities, competitors, trends, market size and growth potential.

C ) Company Description - Describe who you are, what you offer and the audience your business serves.

D ) Organization & Management Structure - A layout of your organizational structure. Are you an LLC, corporation or sole proprietorship? List the key team players, i.e. management, promotions, legal, accounting, etc.

E ) Marketing & Sales - How do you plan to market your music to the consumer (fans)? List your sales, product pricing and positioning strategies, marketing channels, ecommerce and communication strategies, as well as distribution and promotion networks.

F ) Products or Services - Explain the music related products and services your business is offering. Are you selling physical CDs or only digital downloads? Are you offering merch for sale such as T-shirts, posters, download cards and stickers? Do you have your own website outside of your social network that also serves as an online store for your music and merch?

G ) Funding Request or Needs - How much money do you need to get your operation off the ground? How much will you need for operation costs such as fixed and non-fixed expenses? Are you or your staff taking a salary? What are your costs for manufacturing, distribution and marketing?

H ) Financial Projections - How will your music business make money? What are the current and future revenue streams of your business? Be as clear as possible, investors hate ambiguity.

I ) Appendix (if needed) - If you already have an existing music business, use this section to add documents such as: revenue model, resume of owners (founders), cash flow statement, income statement, balance sheet and any other information that can help you stay on plan and attract the right people to your business.

6. Writing the plan using a  mind map

Just like creating a song, you will never really finish your business plan; you just have to stop and be okay with what you have. A business plan should evolve in sync with your business.

As a creative type, this is probably more than what you signed up for, but I assure you that it is a well worthwhile venture. Begin by creating an outline using the parameters I mentioned early. Some business plans are far more granular than what I have offered here, but use this information as a guide to establish the basic elements.

Artists, start your plan by creating a mind map. A mind map is a diagram that visually outlines information. Draw a circle in the center of a piece of paper and write the main idea or concept in the middle. Use lines to connect smaller circles with related ideas or subtopics. Once you’ve jotted down your thoughts, use the mind map to create an outline.

7. Pulling it all together

Once you have the first draft of your business plan, put it down and walk away for a few days. After a short mental vacation, review your plan and make corrections where necessary. Make sure it is properly formatted and free of errors.

Keep in mind that your music business plan is a living document that will serve as the roadmap for your career, but it should be fluid enough to adjust to changes in the market. Visit my website http://musicbusi nessguruacademy.com/businessplantemplate and download my free Word doc Music Business Plan template.

8. Distributing your music business plan (the final draft)

Once the final draft of your business plan is ready, distribute it across your organization and discuss it. Does the plan provide the reader with the key goals of your business? If so, your business plan can be used to help you launch a crowdfunding campaign, find an investor or take on business partners.

SAHPREEM A. KING is a Multiplatinum music producer, DJ, music industry journalist and author of several music industry books, including Dude, I Can Help You! 18 Mistakes Artists Make and How To Fix Them . King has used the knowledge he acquired as an artist, producer and educator to create an online music business course that he will offer from his website http://musicbusinessguruacademy.com in early 2014. He can be contacted at [email protected] .

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Published since 1977, Music Connection magazine is a monthly music trade publication catering to musicians, industry pro’s, and support services. Music Connection exists to serve artists and music people, to offer connections to the unconnected and to provide exclusive information that can help our readers take their music to the next level.

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Music Business Plans Sample

Published Dec.29, 2020

Updated Apr.23, 2024

By: Jakub Babkins

Average rating 5 / 5. Vote count: 3

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Music Business Plans Sample

Table of Content

Music Business plan for starting your own building firm

Do you want to start a music business? Well, that’s a really alluring and one of the most profitable businesses.

To run a music business, you need to hire the services of music artists, musicians, record producers, and composers on a temporary or permanent basis. The business can include creating songs, music sheets, stock music, and theme music. And can also be extended to cover events, ceremonies, and concerts.

The business is exciting, however, due to the large competition in the market, one has to put very much effort in the beginning to earn recognition. Like any other business, the first step would be to create a business plan for music industry. The professional business planning should cover all aspects of the business like workforce, work area, expenses, services, sales strategy, etc.

To give you an idea of how your business plan should look like, we are giving here the business plan of a music business startup, Hymns & Beats.

Executive Summary

2.1 the business.

Hymns & Beats will be a licensed music business based in Atlanta. The business will comprise artists and musicians who will work to create new music pieces. The business will utilize the talent of various singers to release stock music, record labels, and theme music for corporates, events, TV shows, movies, and game developers.

2.2 Management of Music Business

A music company needs efficient management in all the areas such as reaching out to singers, making arrangements for concerts, making sure that the edit effects are perfect, etc. Realizing that she would not be able to supervise everything on her own, Amelia decided to hire a manager to help her.

If you are looking for how to start a music business you should study different music business plans. While exploring business plans on how to set up a music business, try to also explore the ways others use to manage multiple tasks of a business at the same time.

2.3 Customers of Music Business

Our primary customers will be the television shows and film industries who will seek our services for creating tunes, theme music, and songs. Besides, corporate, institutes, companies, game developers, and event organizers will also be our customers.

2.4 Business Target

Our target is to become one of the most renowned music businesses. We aim at releasing at least 10 albums within six months of the launch. We also aim at achieving a rating above 4.7 within a year of the launch. Our profit goals to be achieved within the three years of our launch are summarized here:

3 Years Profit Forecast - Music Business Plans

Company Summary

3.1 company owner.

Amelia Stiles will be the owner of Hymns & Beats. Amelia got her degree in Bachelor of Music from the Oberlin Conservatory of Music, Ohio.

During her schooling, she composed two music pieces that earned her national level fame.

3.2 Why the music business is being started

Amelia wanted to become a playback singer. She learned and practice music all her life and still couldn’t succeed in getting more than a few singing projects. Owing to her optimistic nature, she decided to find new ways to invest her passion for music. She decided not to sing but just compose the music pieces.

Realizing her creativity and skills in the music composing area, she decided to start her own music business. Now Amelia hires music artists and glorifies people’s lives with exceptional tunes and melodic voices.

3.3 How the music business will be started

Since there are many already established music industries in Atlanta, you should study different examples of music business plans. Exploring as many examples of music business plans as you can, will enable you to come up with unique ideas. Analyzing various music business plan samples will allow you to identify the areas where demand is high despite the large competition.

Hymns & Beats will be started in one of Amelia’s properties in Atlanta. Amelia will hire a home renovating professional to turn her property into a structure for the music business. Meanwhile, she will hire a professional business plan writer to make a comprehensive plan for her business.

Then Amelia will purchase the required musical instruments and other equipment like speakers, cables, amplifiers and microphone stands, etc. After which the startup will start its hiring phase. Staff like audio engineers, musicians, and DJs will be employed after strict testing and interviewing. Meanwhile, the company will ensure to establish a strong web and social media presence to get introduced to the target audience.

The costs for startup are as follows:

Startup Cost - Music Business plans

The startup requirements are as follows:

Before making a music business plans template, you should be very clear about the services you are going to provide your customers. In this sample plan, we are listing the services of Hymns & Beats. However, to get a broader idea of services that can be provided in this domain, you should study many other music industry business plans too.

1.Creating Production Music

Our primary service will be to produce music pieces that can be used in television, movies, and other media platforms after getting licensed to the buyers. Those music pieces will cover nearly all music genres such as classical, electronic dance, folk, and disco, etc.

This service will also include producing specific music pieces according to the client’s requirements.

2.Record Labels

We will also release albums and songs made with the collaboration of our team with top-class singers and songwriters.

3.Theme Music For TV Shows, Movies, Trailers & Video Games, Commercials

Our third primary service will be to create instrumental and theme music to be used in the background of movies, trailers, video games, commercials, and reality shows, etc.

4.Corporate Background Music

We will also create professional music themes to be used by companies and corporates in their presentations.

5.Hosting Concerts, Music Festivals & Parties

This will be one of our major services. We will host music nights, concerts, events, and parties. We will also offer the service of presenting music and songs in ceremonies according to the nature of the gathering.

Marketing Analysis of Music Business

The most important component of starting a music studio business plan is marketing analysis. It includes a detailed study of your target market to understand the areas where competition is high or to identify the domains where the demand for your services can be more.

Thus, before you start a music business you should study the dynamics of the marketplace where you will be offering your services. In this music business plan concept pdf we are listing market analysis and market segmentation done by Hymns & Beats for their business. If you are looking for how to write a music business proposal or how to create an efficient marketing plan, you can take help from here.

5.1 Marketing Trends

According to IBISWorld, the average growth that has been reported in the music industry in the last five years is 5.5%. Moreover, Statista reports that the annual revenue generated by the U.S. music industry was recorded to be $21.5 billion in 2019 alone. Simply put, the music industries have always been in demand. To succeed, you just need to be proactive in reaching target customers and creative enough to meet their expectations.

Business plan for investors

5.2 marketing segmentation.

The detailed marketing segmentation of our target audience is as follows:

Marketing Segmentation - Music Business Plans

5.2.1 TV Programs & Film Industries: Our primary customers will be the television shows and programs that need different background music for different segments and for transitions of one segment to another.

Besides, film producers will require our services to create music pieces for trailers and songs. We also expect this group to avail of our services of producing background and themed instrumental music.

5.2.2 Commercials (TV ads) Production Companies: The second group of our target customers will comprise of commercials producing companies. We expect to get projects from this category from the very beginning as video ad creators usually don’t need music producers with past experience.

5.2.3 Video Game Developers, Corporates & Event Organizers: The third category of our target customers consists of video game developers who need music to be played in the background. This category also includes corporates who need professional background music for their presentations.

Apart from them, we also expect to be called by events and party organizers for playing music, singing songs, and setting up musical nights. We also look forward to being invited to cultural ceremonies for displaying the skills and talent we have.

5.3 Business Target

Our business targets are:

  • To achieve the net profit margin of $9.1k per month by the end of the first year
  • To release at least 10 albums hitting a ranking of above 4.8 by the end of the first six months
  • To host at least 10 concerts within six months of the launch
  • To achieve an average ranking above 4.75 within a year of the launch.
  • To balance the initial cost of the startup with earned profits by the end of the second year

5.4 Product Pricing

Since we are not selling any discrete products therefore we can’t define a strict product pricing strategy. Our prices will vary with the required mastery, the difficulty level of the track and music, etc.

However, in the beginning, we will offer massive discounts on our services of hosting musical events and ceremonies and also in our theme music creation service.

Marketing Strategy

Like marketing analysis, sales strategy for business is also an important component of a music business marketing plan. Sales strategy enables you to attract your potential customers, and compete with your already-established competitors.

From this music business proposal sample, you can learn the competitive aspects and advertisement strategy of Hymns & Beats.

6.1 Competitive Analysis

Although we have tough competition, we have entered the market with several competitive aspects. Firstly, we have an excellent team that will help us develop unique music pieces. Secondly, we are collaborating with top singers and songwriters to come up with exclusive albums.

Moreover, we will be offering background music production services for video games and trailers online. So that will enable us to reach a wider audience.

6.2 Sales Strategy

  • We will establish a strong web and social media presence through SEO optimization
  • We will advertise our services through Google Local Services ads, local newspapers, and magazines
  • We will arrange a themed musical night for the young people on the day of launch for an entry ticket of just $3
  • We will offer a 20% discount on our theme music production services for the first three months of the launch
  • We will offer a 50% discount on our offering of playback wedding music by our singers and musicians

6.3 Sales Forecast

Unit Sales - Music Business plans

6.4 Sales Monthly

Sales Monthly - Music Business Plans

6.5 Sales Yearly

Sales Yearly - Music Business Plans

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Personnel plan

Your business is just a collective representation of your staff and managers. So before proceeding to other steps, you should create your personnel plan in a template for writing a music business plan.

Here we are only listing the permanent staff of the company. The singers and songwriters whose services will be hired temporarily for record albums are not mentioned in this list.

7.1 Company Staff

  • 1 General Manager to manage the overall operations
  • 1 Cashier to maintain financial records
  • 2 DJs to assume musical responsibilities in concerts and events
  • 4 Musicians to play musical instruments
  • 1 Audio Engineer to regulate music effects
  • 2 Software/ IT Experts to ensure web and social media presence
  • 1 Sales Executive to promote the company’s sales
  • 2 General Assistants for routine works
  • 1 Receptionist

7.2 Average Salary of Employees

Financial plan.

Making a music business plan is a little tricky as you have to devise a plan to manage your permanent as well as temporary resources. For example, while creating a financial plan for the music business, you have to consider fluctuations in the price of services. The albums that need to be sung or written by high paid singers and songwriters will require you to reserve a bigger than usual budget.

It is recommended to seek professional help in creating the financial plan for your business. To give you an example of how it would look like, we are providing here the sample financial plan of Hymns & Beats.

8.1 Important Assumptions

8.2 brake-even analysis.

Brake-even Analysis - Music Business Plans

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Profit Monthly - Music Business Plans

8.3.2 Profit Yearly

Profit Yearly - Music Business Plans

8.3.3 Gross Margin Monthly

Gross Margin Monthly - Music Business Plans

8.3.4 Gross Margin Yearly

Gross Margin Yearly - Music Business Plans

8.4 Projected Cash Flow

Projected Cash Flow - Music Business Plans

8.5 Projected Balance Sheet

8.6 business ratios.

Download Music Business Plans Sample in pdf

OGS capital professional writers specialized also in themes such as bowling alley business plan , business plan for bouncy castle , nightclub business plans , starting paintball business , business plan for hotel and resort , roller skating rink business plan and many other business plans.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Date

A Sample Music Business Plan

Author

I just got home from a wonderful Thanksgiving dinner with my mother, sister, brother, niece and nephew in Franklin Park, New Jersey. The roads were slick from an early snow shower that turned to freezing rain. As I was driving home it dawned on me that I haven’t written a blog post (on any topic) in over a month. But tonight I suddenly found the inspiration to present…

A Sample Music Business Plan for Your Band

For those of you who haven’t read my previous posts on this topic, I’ll briefly bring you up to speed. I wrote a post on Music Think Tank Open that was transferred to the main page (an honor in my book) called How to Write a Music Business Plan . It was a bit fluffy like this one might end up and one of the MTT readers called me on it. The first comment was, “Would have been stronger with a template or sample.” I got pissed off and created a template . Thanks again Justin .

However, I never provided a sample for two reasons. One, I thought that I might loose business opportunities by providing a sample of a plan that I’ve done. People like to copy plans instead of learning the steps or hiring a business plan writer like myself. Two, because business plans as you will see in the sample below, are confidential. Half of my clients will make me sign a Non Disclosure Agreement and swear me to secrecy for good reason. Luckily for you about a year ago, one rap group from VA gave me the go ahead to publish their plan, but we’ll get to that in a moment.

My Inspiration

Every time I sit down to write another music business plan I think about all of the starving artists out there who have failed to see the value in the business planning process. There are all sorts of books out there telling people not to plan. I personally don’t understand that concept at all.

I’ve read that planning is nothing more that guessing recently. If that’s the case, I’ve been one lucky dude. I plan everything. I plan what body part I’m going to work at the gym tomorrow, what I’ll have for dinner the next day and what I’ll will wear to work on Monday. I honestly feel that I would not be as successful as I am if it weren’t for careful planning.

Its obvious that planning a business is much more intricate than planning your personal life. If running a business was as easy as having an idea and going for it, we’d all be rich. A plan not only provides you with a framework for growth, but also takes a closer look at the details of your business; ones that are typically over looked without a business plan. A CEO has to manage everything from personnel to product development and marketing to distribution and accounting. How is one supposed to conceptualize that process in their head? The answer is clear to me. You can’t.

Elements of a good plan

Whether you are planning to approach a bank or family member for financing or simply look at ways to improve your business, a good plan includes the five sections that follow.

1. Executive Summary

2. Products and Services

3. Marketing Plan

4. Management Plan

5. Financial Plan

Details on each of these plans can be found in previous posts and outlined in depth in my template, You don’t have to take my work for it however, there are tons of resources online that will tell you the same thing about business planning. Over the years I have tailored these plans to mirror the needs of the ever changing music industry. Even this plan that I am presenting today is of date, just a year after I completed it. That should tell you that a business plan should be a living and breathing part of your business and updated as your wants and needs change.

Kevin English is a marketer and student of the arts, who blogs about the skills and strategies necessary to get the most of your musical career at  http://eleetmusic.com  or on Twitter  @eleetmusic .

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Reader Comments (21)

Nice piece Kevin. In the future, I see investors providing funding for well organized groups that have traction and a working business model. Terry McBride's Nettrwerk Group started a joint venture fund called Polyphonic where his company's intent is to invest in artists that are in a place where they could grow with the help of outside funding. Any band with a good team and there business in order can benefit from doing a business plan. Doing one properly provides any band's music business with an excellent road map for future growth. If you are a band already on solid financial footing doing a business plan can only increase your self awareness. Additionally, if you are serious about investor funding, most serious investors will want to see at the very least a detailed well thought out Executive Summary of your project.

David Sherbow CEO, www.LiveMusicMachine.com

Unregistered Commenter

Thanks Dave. Polyphonic looks interesting. Its about time someone stepped up to the plate to take advantage of the scaling of independent musicians. I'll have to do some research on them myself.

Hey Kevin, not sure you'll remember me, but we connected back in the spring and we talked on the phone briefly about my music business plan. I'll say for the most part, the majority of what I planned for (or more so my goals) got accomplished and I'm moving on to rehashing out things for 2011 that I simply did not get to this year.

One thing I learned as I implemented my plan was that some things took longer (and more $$) than I wanted and I had to learn to be okay with that. Like my album for instance. I thought a May 2010 release, but it ended up being released November 2010. But the thing is is that it was my first one and I had no idea how it played out in reality.

I read a good book recently, "Rework", that had an interesting chapter on plans--thought I'd see what your reaction was. To summarize they say:

- plans are fantasy, there are too many factors out of your hands to predict - start referring to your business plans as guesses - plans let the past drive the future - you have the most information when you're doing something, not before you've done it - they advise not writing a long winded plan, because it mostly ends up collecting dust or being constantly rewritten

I've experienced these realities in my past life helping non-profits write strategic plans and seen the plan utterly fall apart or not even used for numerous reasons. In the music industry today, which is constantly changing, I completely agree that all the components you mention for a plan should be thought about and written down, but do you think this means musicians should write several short-term plans a year or phase them out? It probably depends on the goals of the artist.

The follow up question I have to your post is taking a plan and implementing it--how does one do it? Other than doing it, what should be in place to ensure the music business plan shows success?

I wanted to those those questions out for readers here, but my two quick answers are--A) just start doing it (how else does anything get done), and B) incorporate metrics into the plan.

Brian Franke www.brianfranke.com @bfrankemusic (Twitter) www.brianfranke.com/thinkingaloud (music blog)

Registered Commenter

Of course I remember you. I'm like an elephant when it comes that kinda of thing ;-)

This post is purposely in direct contradiction to that section in ReWork for two reasons:

1.) I'm not trying to sell you a book (yet)

2.) I've personally seen businesses fail because they didn't plan

37 signals is a great company and the authors are very smart guys, but when I hear you say things like everything you PLANNED for you accomplished, it further underscores my point.

To answer your questions:

Start by reviewing your finances. If you don't have the money to record, market, distribute and promote you cannot proceed.

Measurable goals is the name of the game. You have to know how many fans, shows, and digital downloads you need in order to become profitable. Otherwise your plan was created in vein.

Great hearing from you Brian. Keep up the good work!

Kevin, I'm glad the topic of music business plans has come up, because I've been trying to wrap my head around them for a while. After reading over your post and the provided documents, I'm still very skeptical about their practicality. (I don't intend to come off as a jerk - its hard to ask critical questions online without sounding like one)

First off, it seems like the plan for Northern Southerners is basically to "do what every other aspiring band and label does." Produce albums, merchandise, and tour. To me, this all seems like stating the obvious. I don't understand how this constitutes a guiding plan.

Under what circumstances will the folks at Northern Southern ever encounter some question or situation in which they say, "hmmm, i dunno, we better check and see what the plan said", and then crack this thing open and have their answer? It all seems very substance-free.

Then there's the finance page... am I reading this wrong, or does it end stating that they're going to be $80,638 in the hole at the end of the year? Obviously companies need to incur some startup costs, but for a PLAN, this certainly seems to end on a bit of a cliffhanger! Fuirthermore, (And I have always, always wondered this), how the heck can ANYONE project music sales for a startup act? Granted, they project a year end total of only $10,700 in total sales, which I suppose is realistic... but what are those numbers based on? Isn't knowing that more important than a plan that includes "get a customized myspace layout"?

I guess I just don't see how "spend money on a publicist and promoter" equals a marketing plan. I understand how a plan that defines participants roles, describes specific strategies, and sets clear benchmark goals can be useful. But this plan does none of that.

However, even if it did, my overarching question remains; how can ANYONE predict revenue or sales in this music industry for new products or artists? It seems to me like things either catch heat, or they don't, and it usually comes down to who is able to work their media connections best and get the most exposure.

I'm really not trying to tear this post down, I've just been told time and time again about the importance of business plans in music only to see a laundry list of very basic promotional activities, combined with seemingly imaginary financial projections. I would very much like to hear where I am missing the point.

Hey Justin,

Thanks for reading and asking some very good questions. BTW you don't come off as a jerk. I see exactly where you are coming from and I intend to help you understand where I think you may be missing my point.

You should always be skeptical of new ideas, especially when they appear from an unfamiliar author on a blog that claims to be the most relevant think tank in the new music industry today. I'm a huge skeptic myself and further more I've never been known for blowing smoke when it comes to the music business. Independents should protect their right to call, bullshit, so I'm glad you were man enough to do so. In any event, here are my arguments.

Point #1: First off, it seems like the plan for Northern Southerners is basically to "do what every other aspiring band and label does.

You're correct. It is exactly that. What is different here is that the Northern Southerners have put it on paper in order to identify the holes in it. How can you find flaws in what you propose to do without seeing all of the details out in front of you?

They have also itemized what the cost are for each basic step of the way. Sure, most (not all) artists know how it goes:

⁃ record and album, market it, promote it and distribute it

Now ask yourself, how many artists can say they have contacted all of the vendors necessary to carry out those four "obvious" steps, and project how much this "labor of love" will cost them in 2011? The Northern Southerners can.

Point #2: Under what circumstances will the folks at Northern Southern ever encounter some question or situation in which they say, "hmmm, i dunno, we better check and see what the plan said", and then crack this thing open and have their answer?

Thats a perfect segment to point #1. The Northern Southerners are often asked by investors to forecast what they are likely to spend next year. Conversely they will also have to take an educated guess about how much money they will make.

Think of a business plan as a big budget. Do you tell your banker that you are skeptical about budgeting for college, auto purchase or home loan? That you don't see the value in planning for those types of expediters? Why is a music business any different? If you say, because its "too hard" and it "either catches or it doesn't", makes me think that it is even more important to plan. Not less.

Music is emotional, I know, but businesses aren't. Remember, I didn't make these rules, I'm just presenting a way to bridge the two truths.

Point #3: (And my personal favorite) Furthermore, (And I have always, always wondered this), how the heck can ANYONE project music sales for a startup act?

How about we start with your neighborhood and say, "Who is most likely to buy my album in this town? What does my target customer look like? What do they do for fun? Where do they hang out?

Let say you come up with one market segment that is 30 year old men. What do 30 year old men do on a beautiful day like today? Watch football. So you can either come up with a catchy song about how Titans CB Cortland Finnegan got his ass beat last week and put it out on the internet too see if it "catches"

You can look at the City, County and State Census records to find out exactly the number of 30 year old men that live in your neck of the woods. Then you take your marketing tool(s) of choice and examine the industry standards on say, pay per clicks (if you plan to use internet promotion).

That is what this and any other good financial plan is based on. Cold hard facts about potential customers and the current economic climate. Not lofty ideas and passing thoughts about how great your music is.

Look I'm not going to elaborate any further in this comment, but please feel free to ask more question here, via email, twitter or phone. I'll leave all of my contact info at the bottom of the post.

Kev eleetmusic[at]gmail 347-688-5383 @eleetmusic

I finally had a chance to skim through this. As someone that has invested in, written and consumed my fair share of plans, here's my feedback:

Your plan is a fine "friend" plan. It's a plan that close friends with money to burn (in a wood stove) might invest in. However, I don't believe this is the type of plan anyone could sensibly shop to strangers (as investors). Here are a few reasons why:

The upside you are offering is far too low for the perceived risk involved. I would never put $100K into something as risky as a band unless I was going to own a significant chunk (probably far more than 20%) of the entity that controlled all the rights and IP.

You need to demonstrate that you are taking some of the significant risks off the table. Without signed rights and services agreements, there's no minimal guarantee that the songwriter or lead singer is not going to drift off to some other band/venture.

As Justin said, the plan is lacking in substance (sorry).. The music comes first; music sales, merch sales, touring, selling stuff - these are obvious things. I want to know what you are going to do to propel yourself to the moon. The 6% return is nice if you are a bank, but I want to know how I am going to end up owning a chunk of a $35M annual business two years from now! What's the unique, unusual, inventive, off-the-charts thing (strategy) that you are going to employ that's going to put you on the map and keep you on the map? (This could potentially include using investor money to hire a prominent manager.)

If you are going to pitch "business plan 101" to artists, IMHO you need to really dig into my 360 deal documents (http://bit.ly/gtGanm) to develop an understanding of how to 1) minimize risk, 2) align incentives, 3) capture all potential revenue streams, and 4) paint a picture of significant upside.

If the hardest thing in the music business is putting lyrics together with a melody to create a popular song, then the second hardest thing is finding the money you need to do everything else. In this industry, before you even write a plan to raise $10K, you better have 1) excellent songs, and 2) a believable strategy that's going to make you into a true, viable business. Cheers.

Strategy for a viable business. Bruce I know you love lists:

New Order: choose the worst singer to not only sing but also write the lyrics (some of which are literally made-up gibberish). Stay signed to a label that refuses, on principle, to finance PR. Invest the majority of any money made in a nightclub that loses money hand-over-fist (and don't buy the building it's in, just spend hundreds of thousands of pounds on its refurbishment). Name yourselves after Hitler's own term for the Nazi party.

Jimi Hendrix: restart your career as a black, psychedelic rock star in another country where black people are still a novelty, by supporting Gene Pitney and Engelbert Humperdinck, then return to your country of birth and try to start your new career there by supporting the Monkees. Pledge support for the soldiers in Vietnam whilst presenting yourself as an alt. culture freak (change your mind later). Perform and record the national anthem at sunrise with feedback guitar and sexually provocative hip thrusts. Die from ingesting your own vomit after building an intense mythology about your drug-taking powers.

Nirvana: oh, you can fill this one in yourself...

Success? Yes, all three, business-wise.

Now, if you'd asked the managers, the story would have an ever-so slightly different slant, right?

Ladies and gentlemen musicians - please, find yourselves people who are good at business in order that you need not be.

Ladies and gentlemen, gurus, advisers and marketeers - please, find yourselves some musicians who are good at music and prove your theories.

Thanks for taking the time to read and comment. I sincerely respect your judgement and expertise.

"Your plan is a fine "friend" plan."

Correct. The Northern Southerners came to me for a business plan to submit to a family friend that was already interested in investing, but wanted to see their business on paper.

"You need to demonstrate that you are taking some of the significant risks off the table."

Agreed. I'll look into this further with future plans of the sort.

"As Justin said, the plan is lacking in substance (sorry)"

Don't be sorry. This is your professional opinion. Granted, everyone isn't at the same level as you are. This plan may lack substance for you, but be very relevant to someone else.

"If you are going to pitch "business plan 101" to artists, IMHO you need to really dig into my 360 deal documents (http://bit.ly/gtGanm)"

First of all I'd like you to understand that I'm not pitching (Lord knows I have enough work to do). I'm simply sharing what I know with the people who have asked.

Please remember that this plan is a sample. Not the end all be all or a guaranteed road to success.

" I want to know what you are going to do to propel yourself to the moon."

Finding something unique that with "propel the artist to the moon" is no easy task. No one has found that thing from my knowledge. Not sure why I'm expected to include this in the plan.

In any event, the Northern Southerners 'thing" was the fact that they were able to clear a Bruce Springsteen sample for their lead single. That's a lot more than some can say.

I'll respond to the only coherent sentences in your comment above

"Ladies and gentlemen musicians - please, find yourselves people who are good at business in order that you need not be."

Really? How much will that cost you over the course of your career? Isn't it better to know the business than to relinquish control to someone who "says" they are acting in your best interest?

"Ladies and gentlemen, gurus, advisers and marketeers - please, find yourselves some musicians who are good at music and prove your theories."

Are you "good" at music? Let's try some theories out with you.

Keep the comments coming everyone! This is how we will progress as an industry.

figured that was pretty coherent... how about: these are three examples of very successful artists, none of whom, on paper, would seem to have had a viable business plan.

And as the world of pop is full of similarly successful musicians who have had chaotic careers that they couldn't have possibly planned for, I would say, though there might possibly be exceptions (and I would love to hear about them - honestly, that's the point of my comments) who started off with a business plan as opposed to a dream and a riff, basically, success from chaos is the norm and to state otherwise needs proof.

So, if you are making a solid offer to work with one of my artists, to create living proof, please mail me off-site and let's talk about it.

cheers [email protected]

What you are referring to is the magic that happens when an artist hits the big time.

It would be foolish to think that none of this was planned. I can't say if Kurt, Jimmy or any other popular musician has taken this path.

All I can say is that they would have been better off by knowing a little bit more about their business. Just like any other business man or woman.

You don't have to believe me or trust that my "theory" works. You can keep on dreaming and believing that one day all of your musical dreams will come true. It's your choice.

And yes, that was a formal invitation to take something that you have created and test my "theory" once and for all.

Will email you offline and post the results here.

"Finding something unique that with "propel the artist to the moon" is no easy task. No one has found that thing from my knowledge. Not sure why I'm expected to include this in the plan."

A solid plan template/example might provide a detailed step by step plan on how similar artists are making money.

Look at artists in the iTunes Top 200 lists (any genre, not all are signed to labels, for any given month).

Look at artists that are performing in venues operated by Live Nation.

Many of theses artists are making money, and not all of them are legacy artists, and not all are signed to major labels. How did they get to where they are now? What was/is (past, present, and future) their business plan? How long does it take? What are the key ingredients that are propelling success? Etc, etc.. Can this success be replicated? What did it cost to get there? And so on.. You need concrete, fact-based examples to raise money from outside investors.

@Kevin - I'm sure there have been many plans made by many artists, but the idea that they are transferable just can't be proved. Sure, we can all learn lessons from history and we can all plan hopefully, so maybe that's how we should look at your plan. I'll look forward to hearing from you.

@Bruce - as ever, intriguing me into action - I had a good look at the UK top 200, of which I found 8 artists who are apparently not signed either to decent sized labels or production companies. Some have arrived at their success by slightly more independent routes, most have a decent financial push behind them, if I took an educated guess.

Unfortunately, nearly all the 'randoms' do seem to have a uniting factor: novelty plus cultural good timing:

Brett Domino, Bruno Mars, Xamder Rawlins, aberlour choir, captain ska, yeo valley rappers.

They all have other groups and org's supporting them in various ways, because of who they are, from radio stations to the patriotic British public.

Of the other two:

Afrojack and Yolanda be Cool, you could easily put the latter in the novelty bracket, depending on your POV on Europop. Afrojack is connected to Spinnin' Records, a dance indie based in Amsterdam, so might also be discounted, although I'm not sure how big they are.

I couldn't find what we might call 'start-ups' or purely artist-run labels; even the labels apparently owned by artists tend to have deals with a bigger label or publishing company.

Of course, there might be a whole different picture in the States; with its tradition of decent-sized, locally based labels with support from large radio stations in the area, the impetus and infrastructure might be in place to facilitate smaller crews in a release. I know that certain hip hop labels have managed to do well, in the grand tradition of 'if they won't release, we'll do it ourselves' that led people like Sam Cooke, James Brown, Curtis mayfield and The Isleys to set up their own labels.

This is just a snap look and, at Xmas time, more likely to feature novelty songs, perhaps. But still, disappointing and surprising, even for digital cynic me.

"most have a decent financial push behind them"

Thus the point of the business plan to raise money.. Record label or not, it's still money + humans + an execution plan that's making it all work. One could possibly raise money if they 'plan' to hire the right humans and execute a 'plan' that has historically (at least over the last ten minutes) worked.

On a related matter, I believe it's incredibly difficult for the average investor (fan) to gauge popularity potential against competing alternatives (for investment money) in the marketplace. The means to measure this are crude at best (e.g.: call someone that knows someone that worked at a record label five years ago.).

So possibly the best plan might be not to bother with plans and just try to be the most exciting band in the world in the hope that 'money + humans + an execution plan', in other words, a label, or a production company, or a publishing or a management company take you on.

On the evidence, it's a better 'career path' than any other.

Investor = fan? It's possible, but unlikely. I know some crazy fans think they own the artist they love in some way, but buying their music doesn't make you an investor.

That's just free-market capitalist speak gone mad.

"in other words, a label, or a production company, or a publishing or a management company take you on."

Sure. Aren't they the groups that are supposed to be writing the plans? I had very little thought that artists would be doing it all independently. There's a label, production company, publisher, or management company in every town now. They are the ones usually seeking an investment.

Absolutely, although they are far and few, even in most big cities in the UK.

In the whole of Scotland (pop: 5 million) there's hardly a publisher, very few management companies, one serious, specialist PR company (although I think they may have just moved to Brighton). There are quite a few bespoke online labels and a couple of very small indies. There is one, very large promoter. The over-all music economy is tiny.

That's a small target to aim for, for most artists. Most of the one billion profit and x-billions turn-over, in other words, the business, is in London.

I'm sure it's similar in the States - with hotspots of finance like Nashville, NY and LA.

I honestly don't think the roads to travel on have altered all that much for artists, because of the internet. As you say, Bruce, you don't expect the artists to be doing it independently - apart from the very odd exception, I don't think that's happening.

Although, I would love it to be possible.

Really very useful and important news for everyone. Terry McBride's Nettrwerk Group started a joint venture fund called Polyphonic where his company's intent is to invest in artists that are in a place where they could grow with the help of outside funding. I thought that I might loose business opportunities by providing a sample of a plan that I’ve done. People like to copy plans instead of learning the steps or hiring a business plan writer like myself. I am going to subscribe to this feed also. Thanks a lot! Business strategy

Very interesting site and articles. Really thankful for sharing. Will surely recommend this site to some friends! Regards,

Again very useful and very important for everyone. Terry McBride Nettrwerk Group started a joint investment fund intended polyphonic ring your company is to invest in artists who are in a place where they could develop with the help of external funding. I could lose business opportunities by providing a sample that I plan. People like to copy the plans instead of learning the steps or hire a business plan writer like me. I'll subscribe to this channel. Thanks! Testking 350-001 || Testking CISSP || Testking 70-649

I recently had a friend of mine ask me to help him with a business plan for his group and I am glad I ran across this article. I had a few business courses in school so I thought I knew a little bit, at least enough to set the rough outline, but this article (as well as the comments and critiquing!) were very helpful!! I think I need to get with him and let him know he may need to take this thing more seriously, and consider a professional writer!

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Music Production Business Plan Template & Guidebook

Are you trying to make a successful company out of your love of music? Starting a business in music production may be exciting and successful. However, to assure its success, just like any business, a sound plan must be in place. We can assist you with our Music Production Business Plan Template & Guidebook. This thorough manual offers detailed advice on how to write a business plan that specifies your objectives and aids in their accomplishment. In order to make sure your strategy is comprehensive and successful, it also offers useful advice and examples. You can easily draft a strong business plan for your music production company using our template and how-to manual.

Nick

Get worry-free services and support to launch your business starting at $0 plus state fees.

  • How to Start a Profitable Music Production Business [11 Steps]
  • 25 Catchy Music Production Business Names:
  • List of the Best Marketing Ideas For Your Music Production Business:

How to Write a Music Production Business Plan in 7 Steps:

1. describe the purpose of your music production business..

The first step to writing your business plan is to describe the purpose of your music production business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a music production business:

At our music production company, our mission is to provide high-quality music production services to a wide range of clients in the music industry. We are committed to using the latest technology and techniques to record, mix, and master music for our clients, and to delivering superior results that meet or exceed industry standards. We strive to be a trusted partner for our clients, offering them reliable and cost-effective solutions that help them bring their music to life and reach their audiences. We are dedicated to providing exceptional customer service and support, and to helping our clients achieve their musical goals and aspirations.

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2. Products & Services Offered by Your Music Production Business.

The next step is to outline your products and services for your music production business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

  • What is my business?
  • What are the products and/or services that I offer?
  • Why am I offering these particular products and/or services?
  • How do I differentiate myself from competitors with similar offerings?
  • How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

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3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your music production business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your music production business includes the following elements:

Target market

  • Who is your target market?
  • What do these customers have in common?
  • How many of them are there?
  • How can you best reach them with your message or product?

Customer base 

  • Who are your current customers? 
  • Where did they come from (i.e., referrals)?
  • How can their experience with your music production business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

  • How does it work, what features does it have, and what are its benefits?
  • Can anyone use this product or service regardless of age or gender?
  • Can anyone visually see themselves using this product or service?
  • How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

  • Which companies are competing with yours today (and why)? 
  • Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
  • What specific advantages does each competitor offer over yours currently?

Marketing channels

  • Which marketing channel do you intend to leverage to attract new customers?
  • What is your estimated marketing budget needed?
  • What is the projected cost to acquire a new customer?
  • How many of your customers do you instead will return?

Form an LLC in your state!

business plan for a music management company

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

  • The equipment and facilities needed
  • Who will be involved in the business (employees, contractors)
  • Financial requirements for each step
  • Milestones & KPIs
  • Location of your business
  • Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a music production business?

To run a music production business, you'll need a range of equipment and supplies, as well as a few permits. Here's a quick rundown of what you'll need:

  • A physical location for your business, such as a dedicated recording studio or a space within an existing music or recording facility
  • Audio and recording equipment, such as microphones, mixers, and soundboards
  • Musical instruments, such as guitars, keyboards, and drums, for use in recording sessions
  • Software for editing and producing music, such as digital audio workstation (DAW) software
  • Depending on your location and the services you offer, you may need to obtain a business license and other permits, such as a permit to operate a recording studio.

Overall, running a music production business requires a mix of equipment, supplies, and permits to ensure that you can provide high-quality recording and production services to your clients.

5. Management & Organization of Your Music Production Business.

The second part of your music production business plan is to develop a management and organization section.

This section will cover all of the following:

  • How many employees you need in order to run your music production business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
  • The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
  • How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Music Production Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a music production business varies based on many different variables, but below are a few different types of startup costs for a music production business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your music production business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your music production business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your music production business plan:

  • Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
  • Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
  • Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
  • Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
  • Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
  • Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

business plan for a music management company

Frequently Asked Questions About Music Production Business Plans:

Why do you need a business plan for a music production business.

A business plan is a document that outlines the goals and objectives of a business, as well as the strategies and tactics that will be used to achieve those goals. It is important to have a business plan for your music production business because it helps to focus the efforts of the company, communicate the business's goals and objectives to potential investors, and provide a roadmap for the business to follow. Additionally, a business plan can be used to help secure funding from investors or lenders, who will want to see that the business has a solid plan in place before they provide funding.

How to write a business plan for your music production business?)

To build a business plan for your music production business, start by researching your industry, competitors, and target market. Use this information to define your business's goals and objectives, as well as the strategies and tactics that you will use to achieve those goals. Next, create a financial plan that outlines your projected income, expenses, and profit. This should include a projected income statement, cash flow statement, and balance sheet. Once you have all of this information, you can use it to create a comprehensive business plan that outlines the goals and objectives of your business, as well as the strategies and tactics that you will use to achieve those goals. A well-written music production business plan contains the following sections: Purpose, Products & Services, Marketing Plan (including Marketing Strategy), Operations/Management Plan (including Operations/Management Strategy), Financial Plan (including Financial Forecasts), and Appendixes.

Can you write a music production business plan yourself?

Yes, you can write a music production business plan yourself. Writing a business plan is a valuable exercise that can help you clarify your business idea, identify potential challenges and opportunities, and develop a roadmap for success. While there are many resources and templates available to help you write a business plan, the process of creating one is ultimately up to you.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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Music Festival Business Plan

Executive summary image

The music festival is a scalable business if you are a skilled event planner and have what it takes to plan and market events.

Anyone can start a new business, but you need a detailed business plan when it comes to raising funding, applying for loans, and scaling it like a pro!

Need help writing a business plan for your music festival business? You’re at the right place. Our music festival business plan template will help you get started.

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Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

  • Fill in the blanks – Outline
  • Financial Tables

How to Write A Music Festival Business Plan?

Writing a music festival business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Music festival services:.

Highlight the music festival services you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your business. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of music festival business you run and the name of it. You may specialize in one of the following music festival businesses:

  • Music festival production company
  • Event management & promotion agency
  • Merchandise & retail
  • Art & decor supply company
  • Describe the legal structure of your music festival business, whether it is a sole proprietorship, LLC, partnership, or others.Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established music festival business, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your music festival business plan:

  • Conduct market research, industry reports, and surveys to gather data.
  • Provide specific and detailed information whenever possible.
  • Illustrate your points with charts and graphs.
  • Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Describe your services:

Mention the music festival services your business will offer. This list may include services like,

  • Event planning & production
  • Artist booking & management
  • Marketing & promotion
  • Activities & attractions
  • Food & beverage
  • Vendor management
  • Stage & production management

Describe each service:

Provide a detailed description of each service you provide:

For instance; for food and beverages: draw attention to the range of food sellers, culinary trends, and dietary options (such as vegetarian, vegan, or gluten-free) available.

Sustainable & environmental initiatives:

Additional services:.

In short, this section of your music festival plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your music festival business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your music festival business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & software:.

Include the list of equipment and machinery required for the music festival, such as sound equipment, lighting equipment, video equipment, stage equipment, ticketing & event manager software, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your music festival business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your music festival business, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

  • Add a table of contents for the appendix section to help readers easily find specific information or sections.
  • In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
  • Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
  • Include any legal documents such as permits, licenses, and contracts.
  • Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your music festival business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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This sample music festival business plan will provide an idea for writing a successful music festival plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our music festival business plan pdf .

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Frequently asked questions, why do you need a music festival business plan.

A business plan is an essential tool for anyone looking to start or run a successful music festival business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your music festival business.

How to get funding for your music festival business?

There are several ways to get funding for your music festival business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

  • Bank loan – You may apply for a loan in government or private banks.
  • Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
  • Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
  • Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your music festival business?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your music festival business plan and outline your vision as you have in your mind.

What is the easiest way to write your music festival business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any music festival business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How do I write a good market analysis in a music festival business plan?

Market analysis is one of the critical components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

  • Stating the objective of your market analysis—e.g., investor funding.
  • Industry study—market size, growth potential, market trends, etc.
  • Identifying target market—based on user behavior and demographics.
  • Analyzing direct and indirect competitors.
  • Calculating market share—understanding TAM, SAM, and SOM.
  • Knowing regulations and restrictions
  • Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

About the Author

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Musical Instrument Store Business Plan

Start your own musical instrument store business plan

Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights.">

An exciting opportunity currently exists for a full service musical instrument retailer in Albuquerque. Although there are a number of musical instrument retailers in this city of over 500,000 people, there are currently only three very small school band and orchestral instrument dealers; these stores have small selections and short hours. At the other end of the spectrum (stores with a more guitar and electrical focus), big chains are competing on prices at the expense of customer service.

MusicWest will offer the buying public a superior shopping alternative, with a huge selection of school band and orchestra instruments, plus guitars, keyboards and accessories, at reasonable prices. Our products will be supported by skilled repair services and a knowledgeable and friendly staff, as focused on educating the customer as on closing the sale. We will exploit our competitors’ weaknesses by offering ongoing music community events, from free lessons, to music clubs, to after-sale follow up to turn one-time shoppers into lifelong customers. Our unique marketing schemes include “ You Play, We Pay ” (whereby a portion of instrument sales and rentals are donated to local school band programs) and “ 100% Money Back ” trade up programs, where customers receive 100% of their purchase price toward upgrading their instrument within one year.

MusicWest will focus on the novice, hobbyist, and semi-professional musician; these three groups are seeking value, customer service, and knowledgeable assistance in making what can be a rather significant purchase. MusicWest will gain a reasonably large percentage of market share in a short period by immediately differentiating ourselves from our competitors. We will establish our branding with our superior service and selection, the excitingly modern look of our retail environment, our “hands on” merchandising approach, and a series of ads with our motto: Stop Dreaming, Start Playing . Once in the store, our clients want to come back often for the special treatment they receive here and nowhere else.

The co-owner of MusicWest, David Moore, has over seven years of experience as the store manager at two successful local music stores. He has seen firsthand where opportunities are missed through lack of follow-through or careful planning, and knows what local customers are looking for.

Based on his experience at other local music stores, David Moore conservatively projects sales of over $500,000 in the first year, increasing to almost $700,000 by year three. We will start generating a profit in September, and profits will increase steadily thereafter.

Although MusicWest may not become the biggest, our intention is to become a “ Must-Shop Destination ”  for those looking to buy a new or used musical instrument in Albuquerque!

Musical instrument store business plan, executive summary chart image

1.1 Mission

MusicWest provides musical instruments to the community.  We separate ourselves from our direct competitors by paying intense personal attention to our customers, and educating our clients about the products they need or desire before, during, and after the sale. We offer creative programs to reward customer loyalty, and we provide on-site repair services for the items we sell. We consider our staff our partners and insist they prosper equitably with the growth and success of the company. We will have the largest selection of School Band and Orchestral instruments  in New Mexico, and will use that advantage to separate ourselves from the competition.

1.2 Keys to Success

  • Establish a well-respected music lesson department and start a rapport early with school band and church music leaders.
  • Offer extended hours to serve a larger portion of the buying public than our competitors do.
  • Educate the buying public by merchandising our products with informational/tutorial signage and literature, and by backing that up with knowledgeable salespeople.
  • Offer the services of a full time repair department to our client base.
  • Continually modify the product and service offerings to stay on the leading edge of technology within our market.
  • Exploit the many weaknesses of our local and national competitors to differentiate ourselves from them.

1.3 Objectives

  • Gain 25% of the local market share within the first three years.
  • Maintain a minimum gross profit margin of 40%.
  • Create a hands-on, educational approach to musical instrument merchandising.
  • Target the large number of school band instrument customers who currently bypass local music stores for catalog or internet sales, due to poor service, selection and prices.
  • Aggressively target the public school system and local religious organizations.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

MusicWest is a retailer of musical instruments and their accessories, located on Albuquerque’s Westside. MusicWest will differentiate itself from its direct competitors by marketing the store’s educational approach, and one of the most hands-on store layouts of its type in Albuquerque. In addition, we will offer a wider selection of products, and more services to reward customer loyalty, than our competitors.

2.1 Start-up Summary

Start up costs will cover all inventory, site modification, website creation, necessary equipment and the necessary capital to fund operation of the business through the first year. In particular, we foresee a need for substantial initial working capital with a large purchase of initial inventory to sufficiently maintain and grow the business. We intend to secure financing through conventional lending sources or with a (7A) conventional SBA loan guarantee. The balance of the funds will be covered by owners investment.

Musical instrument store business plan, company summary chart image

2.2 Company Locations and Facilities

We have chosen a site at Ladera Shopping Center on Coors Blvd. near I-40 for several reasons:

  • Close proximity to Interstate 40.
  • Safe and plentiful parking area.
  • Near high-traffic tenants such as Home Depot and Staples, and anchored by a WalMart Supercenter.
  • Beneficial demographics: over 150,000 households within a 5-mile radius, 85,000+ cars per day on the two cross-streets, and no direct competitors within 10 miles.

All of the above qualities are consistent with MusicWest’s goal of providing a fresh approach to musical instrument retailing. We are looking at leasing approximately 3,500 sq.ft. of space, which will allow sufficient room for up to six lesson studios, a repair area and necessary storage and office space. We expect usable selling space to end up being around 2,400 sq.ft.

2.3 Company Ownership

MusicWest will be a partnership. The principles of the business are Kayle and David Moore. Kayle Moore will assume the position of President/Office Manager, while David Moore will assume the duties of Store Manager.

Products and Services

Pro Tip:

We will offer a “state of the art” music lesson program featuring top degreed instructors, as part of our overall focus on educating our customer base. This program will include private and group lessons, as well as outreach to local schools. We will also develop music clubs geared to children and seniors, to further serve our local community.

Although offering school band and orchestral instruments, service and lessons will be our main competitive advantage, guitars will remain the primary revenue producer for musical instrument stores for the foreseeable future.

3.1 Product and Service Description

MusicWest will offer several name brand instruments such as:

  • A large selection of band instruments by Selmer/Bach, Yamaha, and Leblanc with an emphasis on the intermediate level instruments.
  • Electric and acoustic guitars including Albuquerque exclusive lines by Fernandez, Suzuki, Wechter and other nationally known brands, such as Takemine, Ovation and Martin.
  • Amplifiers by Crate, Kustom, Traynor and Hiwatt to support our guitar sales.
  • Keyboards by Yamaha, Suzuki and Korg.
  • Sound reinforcement products will be exclusively Yorkville. We will be the only dealer in New Mexico, and will offer a rental program for local bands and schools.
  • A very well stocked accessory department to support the above items. A recent Music Trades article found that 80% of the buying public considered this the most important reason they buy from a musical instrument dealer.

In addition to complete repair services for our products, we will emphasize upgrades and customization items to develop other income streams our competitors have not considered. When carrying a brand name item conflicts with giving the customer the best all-around value, we will always pursue the product that best suits our client’s interest.

3.2 Competitive Comparison

MusicWest is different from its competitors in several key areas:

  • Our three largest competitors do not carry band and orchestral instruments, one of our primary focuses. 
  • We offer services to support our products, and most of our competitors sell just the products themselves.
  • MusicWest will take full advantage of “name brand recognition,” an element that most dealers overlook and under-advertise.
  • MusicWest will capitalize on our competitors’ weakness in the accessory category by keeping ours well-stocked.

Musical instruments cannot be fully enjoyed without knowledge and experience. Unfortunately, we cannot sell these products at a higher price just because we offer repair and instructional services; the market does not support dealers who have tried this. We must offer varied services and product mixes and be competitively priced as well, in order to survive in this new economy. In addition to educating our customer base, we are committed to providing the best product value.

Accessories are the highest profit center for the store and we have to expose our competitors’ weakness in this area if we wish to expand market share from day one of operations. Competitors that do not stock the necessary accessories will send their customers to competing stores, from which customers may not return. We must keep our accessory department well-stocked to take advantage of our competitors’ flaws, and avoid this pitfall ourselves.

3.3 Fulfillment

When feasible, MusicWest will buy its inventory directly from the manufacturer in order to obtain the lowest price possible. We will make use of one or two jobbers that sell a large variety of small goods that would be impractical to obtain directly. We will frequently compare prices of these distributors to ensure we are getting the very best price possible per item. That said, MusicWest will always put the quality/value of the product we pass on to the consumer ahead of price. The majority of our competitors buy by the piece rather than by the box or case lot. We intend to buy our key , best-selling items in bulk, to obtain a pricing advantage over our direct competitors. Common discounts in the industry consist of free freight, repayment term incentives, additional free merchandise or incremental percentage discounts on quantity purchases.

Although we will buy key items in bulk when practical, we will also remind ourselves that sometimes a better deal for the sake of lower prices is not the best move for our bottom line.  We should not risk over-stocking new or unproven merchandise just to get a small advantage in price over competitors.

3.4 Technology

The Music Industry is currently riding a trend toward high-tech electronics in several product areas, most notably in guitar related effects and multi-track recording hard/software. Sales increases in these areas are due to the slashing of the price barrier in the home recording market, and the pace at which new products become obsolete. This high tech boom has increased the M.I. market substantially.

Digital keyboards are also seeing increased market share as technology becomes more accessible. These units offer families state-of-the-art sounds and capabilities without a huge learning curve. For instance, digital piano sales are currently the fastest growing segment of the total piano market in the U.S., and sales have increased 450% over the last ten years.

One downside of technological innovations is that prices in this industry are dropping sharply, lowering revenues per unit. It is therefore essential that the Musical Instrument retailer of today bundle products together as packages, to increase profits and build sales.

3.5 Future Products and Services

MusicWest will rotate its stock so that new products are always available. The store will balance what is popular today with what will be popular tomorrow. We will institute the following programs in order to ensure expansion of the store:

  • We hope to become the only store in New Mexico to institute the “Weekend Warrior” program, sponsored by the National Association of Music Merchants (N.A.M.M.). This program is responsible for bringing back into the fold many who had given up on music. The program has successfully raised income opportunities for the stores who have implemented it.
  • By the end of the first year of operations, we must place major emphasis on developing our own school band instrument rental program. This rental program will allow us to insulate ourselves from any large-scale competitors that might locate here, and generate consistent year round high profit income opportunities.
  • MusicWest will take advantage of the internet as a major tool for passing along information about our store and products to potential and current clients. We will maintain this site as a local site, geared toward information and service. We believe that placing a sales engine in our website would only lower our initial profit margin and limit sales opportunities, so we will avoid this for now.
  • We hope to start music clubs geared to children and seniors. These will be clubs that we can support with little cost, but which can generate additional sales not actively targeted by our competitors.
  • In the long term, there are many avenues we can explore, such as traditional piano sales, professional sound installations, and service contracts with the public and private school systems.

Market Analysis Summary how to do a market analysis for your business plan.">

Key sales areas related to our business model are:

  • Fretted instruments $903.2 million.
  • School Band Instruments $532.2 million.
  • Sound Reinforcement $819.9 million.
  • Printed Music $511 million.
  • Electronic Keyboards $200.7 million.
  • General accessories up 4.8% in retail dollars shipped, to $364.3 million.

In the musical instrument industry, consumers are looking for wide selections, prompt and knowledgeable service, good product value, and music lessons to further their understanding and enjoyment of the products. They prefer to find stores offering these benefits through word of mouth.

The musical instrument market has recently been driven by a number of low-cost, high-selection Internet and mail order companies, which has caused prices to level out, by giving consumers comparison shopping at their fingertips. In response, various large chains have tried to offer similarly wide selections in their physical retail spaces, at the expense of staff training and customer service. However, the high-profile advertising generated by these chains has rippled down even to small stores, as more and more musicians at all levels start to seek out the missing elements of these sales model. MusicWest has the experience, prices, and focus on customer service to fill these gaps.

4.1 Market Segmentation

The following market segmentation table is based on the finding that roughly 46% of the general population are “musicians” of some form or another. Within that group, there are different segments, ranging from professionals, to semi-professionals, to hobbyists and novices. It is very difficult to make a single demographic profile of the typical consumer for this industry, as within each instrument or client type, the figures for age and income will vary drastically. The market analysis numbers show the 46% of the local population around MusicWest who will serve as our potential customer base.

Listed directly below are the latest industry figures relating for New Mexico in total Musical Instrument sales:

Musical instrument store business plan, market analysis summary chart image

4.2 Target Market Segment Strategy

We intend to target musical novices , hobbyists , and semi-professionals . These groups include the largest percentage of musicians, with the greatest amount of disposable income. These market segments can generally be approached with the same marketing techniques, and can be very loyal when treated properly.

We have chosen not to make professional musicians our focus for several reasons. Professional musicians require a great deal more attention and require much less profitable pricing, and they prefer a more exclusive shopping environment away from the novice consumers (ego).

4.2.1 Market Needs

Our target clientele, though varied, can be approached in very much the same manner. Their most important market needs are:

Most musicians need support and service. The instruments that we sell can be difficult or impossible for end users to service. Potential clients tend to seek stores that can fulfill these services through word of mouth referrals and/or direct shopping experiences. These musicians come back time after time if they feel they are getting a fair deal.

One of the most common complaints from musicians in our market is the high turnover of sales staff at other dealers, and the resulting inconsistencies in their shopping experiences from day to day. Consumers like to see the same faces on each visit and this business is one that thrives with the personal relationships salespeople develop with their clientele.

In addition, female customers have traditionally been treated poorly by this male dominated field. By reversing this trend, reinforced by ongoing sales training and with unbiased customer interaction by our sales staff, we can further exploit the weaknesses of our top local competitors.

4.2.2 Market Trends

The musical instruments market is currently being driven by mail order and internet retailers. Although such companies are known for low pricing and large selection, their prices have bottomed out at a level the smaller stores can offer, while still remaining financially sound. Retail mega-stores such as Guitar Center and Sam Ash are growing at a steady pace, but appear to be affecting the market in a positive manner. Their high level of advertising drives in more consumers, who in turn will seek out other music stores for comparison-shopping, and for the music lessons and personal service not offered by most of the mega-stores.

Consumers increasingly expect the music stores they deal with to offer a clean, high-tech and comfortable shopping environment, and more personal service to explain the ever-increasing levels of technology in musical instruments. Consumers generally want all this and expect to see prices consistent with the mega-stores. In short, they want a one-stop shopping experience. We have shopped these major chain stores, and find that they have poor customer service, and that their average employee is under-trained in sales and technical aspects unique to this industry. Another trend that benefits this industry is that as production moves to other nations such as China (due to lower cost of manufacturing), prices go down and units sold go up, increasing revenue opportunities.

4.2.3 Market Growth

The musical instrument market has seen steady growth over the last ten years, with revenue increasing from $4.2 billion in 1995 to $7.1 billion in 2000. 2003 sales were down to $6.9 billion, still the second highest year in industry history. These numbers were reached in spite of the difficulties with the economy and turmoil on Wall Street. The most dramatically declining product was acoustic pianos, a product we are not interested in at the present time. The market had seen steady growth of around 4% over the last few years, despite other key industries being down (for example, automobiles down 7%, personal computers down 3% and new home construction down 1.8%). In addition, 10-year growth patterns for the last decade show incredible gains in key instrument categories. We expect these trends to continue as the economy strengthens.

4.3 Service Business Analysis

Musical instrument retailing is accomplished through a variety of outlets:

  • Local Musical Instrument retailers : Storefront reseller with less than 10,000 square feet. These retailers usually carry one to three main brands and offer a mix of instruments and accessories. Occasionally these will be specialty stores, offering only one type of instrument for sale (i.e. drums, pianos or band instruments).
  • Chain stores and Superstores : These include major chains such as Guitar Center and Sam Ash. These stores are always bigger than 10,000 square feet and offer greater selection of instruments. These stores offer sub-standard walk-in service and generally cater to people looking for products in boxes with aggressive pricing and little support.
  • Mail Order : The market is increasingly served by mail order businesses that offer aggressive pricing of boxed product. For the purely price-driven buyer, who buys boxes and expects no service, this can be very attractive. These dealers also serve as an educational tool by displaying items that most local dealers do not stock.
  • Others : These include direct sales by manufacturers and the increasing number of Internet sites that are mainly price driven. EBay has also become a player in this category.

4.3.1 Distributing a Service

Musical instrument re-sellers are supplied by a variety of means:

  • Direct purchases from manufacturers – generally the best price, but higher minimum orders.
  • Purchases from national distributors – large selections, good prices.
  • Purchases from regional distributors – small selection, average pricing.
  • Specialty distributors/mfg. reps – good to great pricing based on yearly volume.

4.3.2 Competition and Buying Patterns

Consumers expect to walk into a clean, well-stocked shopping environment. The consumers do shop between stores, as buying a musical instrument is a big purchase for most. Price tends to be a huge influence on most musical instrument buyers; if they feel your pricing is out of line with the market they will usually walk right out. On the other hand, if they feel your price is in line with the market they tend to look to what else your store offers, such as lessons, repair facilities, knowledgeable staff, etc. Growing percentages of customers are price-driven only, and want to be handled in a direct and efficient manner without lengthy price negotiations. Accessory buyers tend to find the store closest to their home or place of work for the sake of convenience.

4.3.3 Main Competitors

There are several local retailers that will compete with us on some level. In the following segments, we will attempt to give a consumer view of the main competitors, from largest to smallest, and a brief description of the others. For school band instruments, our two main competitors are Music World and Baum’s Music, and for guitars and amps Marc’s Guitar and, to a lesser extent, Guitar Center and Grandma’s Music and Sound. Grandma’s and Guitar Center are the two largest stores, but they do not sell school band or orchestral instruments. There are only three band instrument purveyors in Albuquerque, and all are small-scale operations.

4.3.3.1 Marc’s Guitar Center

Marc’s Guitar Center, 2324 Central Avenue SE, Albuquerque, NM 87111 

Hours Mon-Fri: 10-6 | Sat: 10-5:30

Marc’s Guitar Center is a small shop catering to beginning players. This store offers a very limited selection of electric and acoustic guitars and amplifiers at generally average market prices. The store has two full-time teachers and its proximity to the University of New Mexico is a prime factor in its success. Marc’s does only small local advertising in its general vicinity and relies on the yellow pages and word of mouth for its expansion. The store is in its 25th year of business. Although the location is its greatest asset, many people do not like to visit the university area, due to its exaggerated reputation for high traffic and crime. The store carries some name brands and a few “B” brands.

4.3.3.2 Music World

Music World of Albuquerque, 7017 Menaul NE, Albuquerque, NM 87110

Hours Mon-Sat: 9-6

Music World is a full line retailer going through severe changes. Three years ago, Don Johnson, the owner of Music World, bought the two King Music Stores that had been in Albuquerque since the 1950s, and then opened a second Music World location in Santa Fe around the same time. Within one year’s time he had 100% employee turnover at the King locations, and as of this plan he has closed all three stores and moved his last remaining Music World store into the old King Music building on Menaul. The store carries a few name brands augmented by basic accessory lines. The King Music stores, at their peak, were generating approximately $1.8 million between the two locations, but sales had fallen off by more than half when Mr. Johnson purchased them. The stores have always had the reputation for high prices and have always pushed the idea that they provide more service than most. In fact, the stores offered little more service than one normally expected to receive. Music World is extremely out of date in their sales and marketing techniques, and is on the declining slope of technology. These stores sell basic items available anywhere. The store recently lost its largest piano line (Baldwin/Wurlitzer). As of the date of this plan, Music World is experiencing severe cash flow problems and is in litigation for discriminatory employment practices with former employees. A second lawsuit has been filed by his former landlord for damages done to the premises.

4.3.3.3 Other Competitors

The following are additional but smaller competitors:

Lesman’s Music – Specializes in dj and recording gear and rentals. Lesman’s recently downsized from a full line retail operation. They have a very poor reputation but still fulfill a need to the community. The store recently moved to a new location that, oddly, has no storefront parking.

Baum’s Music – School band instruments only. They have a good reputation and loyal clientele. Baum’s offers instrument rentals. The store primarily stocks a few entry-level instruments and has a large repair department.

Rio Rancho Music – School band instruments only. They call on school band directors as a means to drive the business. They offer rentals but have a very poor reputation in the community. The store has been for sale for over five years.

Encore Music – Very small retailer that specializes in vintage gear and some new guitars and amps. They have a decent reputation. They do some minor repairs. This store is rumored to be having cash flow issues.

Robertson’s & Sons – Specializes in orchestral instruments. The store has average pricing on most items. They have a very good reputation and are world renowned for their repair department.

Music Go Round – Franchised used musical instrument dealer.

Apple Mountain Music – Folk instruments are their focus. They offer music clubs on ethnic instruments; open part time.

Studio D – A pawn shop/music store; some new, mostly used, gear.

Luchetti Music – Recently out of business; was a drum specialty store.

Mail order catalogs : There are several mail order providers on the national scene. The biggest of these is Musician’s Friend (owned by Guitar Center ) out of Medford, Oregon. These low cost competitors drive the market. They have large inventories and offer all of the latest products to hit the market, usually before the local storefront dealers. These mail order shops are taking a large bite out of the local dealers’ market, but also contribute to educating the public on new items, and assist in growing the overall market on a national level. Service can be less than ideal, and shipping and handling fees are involved. Other catalog dealers are Venemans Music Emporium , American Music Supply , and International Musician’s Supply .

4.3.3.4 Grandma’s Music and Sound

Grandma’s Music and Sound, 800 S-T Juan Tabo NE, Albuquerque, NM 87123

Hours Mon-Fri: 9-6 | Sat: 10-5

Grandma’s Music is Albuquerque’s largest musical instrument retailer, with over 13,500 sq. ft.

This store is a pro shop that carries state-of-the-art technology within its pro audio department. Grandma’s carries guitars, drums, sound reinforcement, pro audio, dj and general accessories. The store stocks a huge amount of name brand gear. The store also has a large presence in the mail order and Internet sales areas. The store operates on aggressive pricing and high volume sales and is generating approximately $6 million in sales per annum. Grandma’s has a poor reputation with the average non-professional musician, in terms of customer service.  All customers are definitely not treated alike here. The store has repair facilities and a large staff, but again suffers from apathy toward non-professional shoppers. The stores pricing is adjusted to the knowledge level of the customer. The store in general is very well laid out and has state of the art lighting and displays, but is also very cluttered, with hazardous audio cables strewn about the floor where one might trip over them. As of this plan, Grandma’s is relocating to the Westside at the intersection of Paseo Del Norte and Coors Blvd. They have no plans to add teachers at the new location.

4.3.3.5 Guitar Center

Guitar Center 6001 Menaul Blvd. NE, Suite B, Albuquerque, NM 87110

Hours Mon-Fri: 11-7 | Sat: 10-6 | Sun: 12-6

Guitar Center is the nations largest musical instrument retailer with local space over 13,000 sq. ft.

Guitar Center is the nation’s leading retailer of guitars, amplifiers, percussion instruments, keyboards and pro-audio and recording equipment. They presently operate 128 Guitar Center stores, with 108 stores in 46 major markets and 20 stores in secondary markets across the U.S., including Albuquerque. Guitar Center is also the largest direct response retailer of musical instruments in the U.S. through its wholly owned subsidiary, Musician’s Friend, Inc. Its catalog and website, www.musiciansfriend.com, opened in Albuquerque in March, 2004.

4.3.4 Business Participants

Superstores are a growing presence in the larger markets. These stores benefit from national advertising, economies of scale, and volume buying, and carry the latest name-brand items. The aggressive pricing and selection of the superstores threaten the smaller local stores.

These local stores are generally mom and pop stores that are under-capitalized and suffer from an outdated management philosophy. Unless these stores can adjust to the superstores’ way of marketing and selling, they run the risk of increasingly losing key lines and eventually the core of their customer base.

Many small to medium companies who have adapted to this new way of doing business are increasing their business even with the superstores in their immediate vicinity. These smaller stores are able to offer services and support that the giants cannot, and have focused their stock in order to compete on a more level playing field. MusicWest intends to fit in this category.

Strategy and Implementation Summary

We will build strong relationships with our customers by providing stellar personal service and by exceeding our customers’ expectations on each visit. We will provide unique programs to reward them and gain repeat business. MusicWest intends to attract customers away from the mail order firms and bring them back to the local market. It will not be easy, but with a commitment to offer our customers an exciting educational environment along with up front, fair pricing, and excellent before and after the sale service, we can succeed.

5.1 Strategy Pyramid

Our main strategy is to out-serve the competition. We will accomplish this through strong personal sales/service, educational aspects, and proper product selection. Programs such as our “ 100% of purchase price trade up guarantee ” and our “ You play, we pay ” incentive programs will support these areas of concentration. In addition, we intend to build strong relationships with key consumers who have influence on the purchasing decisions of others, be they teachers, clergy or performing musicians. These individuals are important to the long-term success of the business. We will take advantage of the great clinics and concerts provided by our manufacturers and suppliers to bring excitement and energy to our customer base; we will also bring in local stand-out musicians. We will follow up on these events with call-backs and surveys to maximize their potential for future sales.

5.2 Value Proposition

MusicWest offers the novice to semi-professional musician the convenience of a wide selection, unique offers, experienced and reliable staff, and an educationally-focused community center, all in one location. These values more than offset our lack of usefulness to the professional musician market segment.

5.3 Competitive Edge

Our most critical competitive edge will be the way we treat our customer base. We must deliver greater interaction and satisfaction than our peers to every consumer from the start, in order to win their trust and earn their repeat business. Musical instrument consumers in the Albuquerque area are used to poor service and the apathy of local dealers. We must break this chain if we are to differentiate ourselves from the competition and excel. Our unique marketing plans and repair/customization services will also make us stand out from the crowd. We will have a multi-faceted plan of attack in place to accommodate our prospects from the beginning to the end of their shopping experience. We will also go a step further through our customer retention plans, by keeping our store in the minds of these customers after they leave, so they will want to return. None of our local competitors actively does this.

5.4 Marketing Strategy

The marketing strategy is as follows:

  • Emphasize our superior service and support.
  • Aggressively expose competitors’ weaknesses in order to attract new clientele.
  • Key in on consumers who have been pushed out of the market by local dealer apathy.
  • Educate our clients and respect their needs. Address these needs to keep them coming back.
  • Exude our excitement and enthusiasm for music to our customers.
  • Always, always differentiate ourselves from our competition.
  • Consistently end all of our advertising with our motto, “ Stop dreaming, start playing ,” to make our advertisements easily recognizable to the public.

5.4.1 Pricing Strategy

The industry is going through a period of adjustment in regards to pricing. Many manufacturers have instituted MAP pricing (minimum advertised price) which has stabilized margins to some degree; however, they also sell at lower prices to the big box stores, which places smaller dealers at a distinct disadvantage. Consumers have also become more knowledgeable and continue to hunt for low prices. Our research has shown that many of these consumers buy for price, but then when they find the after-sale service lacking, look for alternative vendors, who may not have the lowest price but do have the service to back the sale. Novice buyers are generally more concerned with the value and quality of items they are buying than with price. MusicWest will address these issues with a multi-faceted plan on pricing.

Our plan requires that all of our merchandise be clearly marked with fair, street-value prices. These prices will be appealing to 85% of our customers. For those consumers requiring deeper discounts, our entire sales staff will be empowered to negotiate discounts if the sales representative deems it in the best interest of the store. Value adding and margin boosting merchandise will be bundled with low margin bestsellers to keep net margins acceptable. For all of this to come about, we must first approach and give thorough sales presentations to each potential customer that walks through our door, and we must interrogate them to find out any pricing issues that may affect the buying decision. Additionally, we must actively pursue adding non-traditional means of income to each major ticket sale; i.e. upgrades/customization, service contracts, rentals. This will allow us to not only gain our customers’ confidence, but will give us additional revenue streams the average Musical Instruments dealer has not even considered.

5.4.2 Promotion Strategy

MusicWest will target our desired customer base using Radio, Direct Mail, Newspapers and word of mouth. Radio is the greatest vehicle to reach musicians for the simple reason that the love of music is what drives us to become musicians. Direct Mail will target consumers who are budget or coupon minded. Newsprint reaches a large portion of the public, letting them see what we have to offer before making a trip to the store. Word of mouth is the one area we really hope to see develop, as a personal endorsement by a customer is worth more to us than what any advertisement can achieve.

MusicWest will always promote itself as an education oriented store, offering private and group lessons for all the instruments we sell. Our motto is “ Stop Dreaming, Start Playing! “

5.4.3 Marketing Programs

Our critical marketing program will be the grand opening, so we will place our initial advertising to give the greatest coverage. Our specific goal for the event is to create the biggest buzz the local music community has ever seen regarding a new store. The base budget we have set for this event is $5,000. We will have other events that will have no direct cost, such as performing bands and contests.

We will review our efforts by canvassing targeted ZIP codes to see if we achieved the desired coverage of our target markets. After the initial grand opening, we will have ongoing promotions that will coincide with the N.A.M.M. (National Association of Music Merchants) calendar of events. For example, N.A.M.M. has named April of each year, “International Guitar Month.” N.A.M.M provides sales kits to promote these events at little or no cost to the dealer. Different staff members will handle these sales on a rotating schedule, so that all of us are involved personally with the promotion of our store.

5.4.4 Positioning Statement

For our target clientele, including those who feel abandoned by the local retailers, MusicWest will provide a complete one stop shopping experience that will address all the needs of the aspiring musician. By offering repairs and unique marketing programs such as our “ You play, we pay ” and our “ 100% of purchase price trade up policy ” we can exceed the local client base’s expectations of what a music store can be. Unlike the vast majority of our competitors, MusicWest will more selectively stock products with value in mind and not just the lowest price, and we will always strive to provide the highest level of attention to our customers in order to gain their trust and purchasing power.

5.5 Sales Strategy

MusicWest will always operate under the assumption that any customer who enters our store is potentially a customer of our competitors. We will always strive to give each client our utmost attention and will try to accommodate whatever need brought him or her to us. We will make every effort to win them over in a low-pressure relaxed atmosphere, while stimulating their senses with modern eye-catching displays designed to maximize impulse buying. MusicWest will always bend to the type of customer we are serving, whether he or she is a professional, novice, parent, or child. We want the largest market share we can get and must do anything in our power to achieve this goal.

In short, nobody walks out unless we are satisfied we did everything possible to gain his or her business either today or in the future!

5.5.1 Sales Forecast

Our projections are largely based on Dave Moore’s experiences as manager of King Music and Marc’s Guitar Center, respectively. We believe we can easily meet the projected sales figures for the first year and believe we may be conservative in our projections for the next two years. The fact that there are only two band instrument dealers in our targeted territory and that these two dealers are weak, should provide a great opportunity for garnering instant credibility in the market we serve. Mr. Moore has compiled a list of over 4,000 musicians he has helped during his tenure in the Musical Instrument market. This will allow us to save time and money by drawing in proven customers for the opening of the store, and a client base to operate from during the initial months.

Musical instrument store business plan, strategy and implementation summary chart image

5.5.2 Sales Programs

MusicWest will offer several programs designed to increase sales and reward customer loyalty:

  • MusicWest’s “ 100% Of Purchase Price Trade Up Policy ” on fretted instruments. Within the first year of purchase, MusicWest will give a consumer 100% of what they paid for a fretted instrument less tax toward a step-up instrument that is currently in stock. The trade can have normal wear and tear. MusicWest will be the sole judge of what qualifies as a step-up instrument.
  • MusicWest’s “ You Play, We Pay ” incentive program for school band instruments and accessories. Students will register for the program, which will donate up to 2% of qualifying purchases to their school band booster committee for use with school band programs. A check will be forwarded to the committee quarterly.
  • MusicWest’s “ Free Restring ” policy. MusicWest will restring your guitar free no matter where it was purchased to attract our competitors’ customers. Restring is for labor only, strings or parts extra.
  • MusicWest will offer “ Free Guitar Lessons ” with the purchase of any type of guitar. Under this plan, the customer will get coupons for four free group lessons; a different level of these lessons will be held weekly. Classes will be taught by employees (David Moore or C. Ray Himes, our guitar experts). This program does not affect the price a customer pays for a guitar.
  • MusicWest will offer a “ Free Loaner Instrument ” when any band instrument rented or purchased from us is in the shop for more than 48 hours.

5.6 Strategic Alliances

MusicWest will become a member of N.A.M.M. (National Association of Music Merchants). This organization plans many events throughout the year, such as, “International Guitar Month.” We intend to follow this group’s promotion schedule and to tie it in to our own advertising campaigns. No local storefront is currently taking full advantage of these offerings. By taking advantage of this trade organization’s expertise, we can save ourselves time and money on developing an effective advertisement campaign from day one. Some manufacturers also have advertising co-ops that we will use when feasible. In addition, these manufacturers provide nationally known musicians on a fee basis to their dealers, to use in informational/instructional clinics and to drive additional sales opportunities.

Web Plan Summary

MusicWest will have an informational based website containing hyper-links to our main manufacturers’ home pages.  We will also offer promotional coupons to entice Web surfers to visit our storefront.  We haven purposely chosen to avoid a sales engine, as we believe our major Web competitors could easily beat our local price.  The User Interface we envision will be easy to page through, with exciting  graphics and again it will be geared toward steering visitors to our storefront.

We will work with an outside website design and hosting service to create and maintain our website.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

MusicWest will initially maintain a small staff of over-achievers in order to take advantage of the higher overhead of our key competitors. We will operate with a staff of four full-time employees and one to three part-time employees as needed. It is our philosophy that each employee should be empowered to make crucial decisions on the spot where it benefits our approach to customer satisfaction. This staffing approach allows us the need for only one manager for day-to-day decisions needing a final word, keeping hierarchy to a minimum. MusicWest will be very selective in future hiring, and will reward employees as the store prospers in future years. It is crucial to our business that we keep employee turnover at a minimum, as consumers in this business like to develop long-term relationships with their sales representative. Our key employees will be experienced musicians known in the community.

7.1 Organizational Structure

MusicWest will require its staff to be multi-skilled. Each employee will likely oversee many aspects of the business on a given day. Our main divisions will be Sales, Service and Administration. Our focus on customer service will depend on all of our employees knowing as much about each area of the business as possible. A complete book of structures and policies, along with successful actions, will be created and maintained from the date of opening to streamline the process of adding new employees as they become necessary. Ongoing training for all employees will be necessary in order to keep our edge on the competition.

7.2 Management Team

Kayle Moore – Co-Owner Operations Manager

Qualifications:

Kayle is a 16-year veteran of the wholesale jewelry industry where she worked her way from an entry-level shipping clerk to the CEO/COO position with Shube’s Manufacturing. Over her 16-year tenure, Kayle took the company from 60 to over 300 employees and from $1 to over $15 million dollars in sales. Kayle’s strengths are writing and carrying out sales programs, and keeping a company within its financial limitations. Kayle, who plays the clarinet, has had a lifelong interest in music and plans to translate that enthusiasm, along with her management skills, into making MusicWest a successful long-term investment.

Related Management Strengths:

  • CEO/COO level responsibility.
  • Ability to get others to produce to their potential.
  • Writing sales programs to generate and maintain consistent sales goals.
  • Excellent communication skills.
  • Maintains mutually beneficial vendor relations.
  • Ability to anticipate and adapt to changing economic conditions.
  • Experience negotiating complex sales contracts, including financing and shipment options with large corporate clients such as Wal-Mart and Target.
  • Implemented the use of EDT computerized ordering software with clients to streamline the ordering process and allow the manufacturer to stock less raw inventory, simultaneously reducing overhead and increasing profits.

David Moore – Co-Owner Store Manager

Dave is currently the Store Manager of Marc’s Guitar Center in Albuquerque. Dave was previously Store Manager for King Music’s Westside location, where he was able to turn around a declining location and outsell the company’s flagship store for two years straight, despite fewer customers and staff. Dave has been a musician for over 23 years and toured professionally in the 80’s. Dave has been involved in sales and sales management since the age of eight. Dave has taken many sales/management courses and has had full profit and loss experience. Dave was the co-owner of a 7,500 sq.ft. retail furniture store in the early 1980’s.

Related, industry-specific strengths:

  • Music Store Management. (7 years +)
  • Direct purchasing of up to $400,000 in inventory annually.
  • Top sales producer in the musical instrument combo department, in addition to his full time management responsibilities at both music stores where he has worked.
  • Outstanding employee relations, with lower than industry average turnover.
  • Excellent relations with vendors.
  • Vast knowledge of Musical Instruments and the Musical Instrument Industry locally and nationally.
  • Superior customer interaction/retention skills.

Additional Qualifications:

  • Sales, Sales Manager and Finance Manager in the automotive industry.
  • Trade show management and Sales in the Wholesale Jewelry Trade.
  • Certified computer skills.

C. Ray Himes Service Department – Manager

  • Graduate of the prestigious Roberto Venn School of Luthiery in Phoenix, Arizona.
  • Trained in all aspects of fretted instrument repair from the simple to the complex, including re-frets, neck resets, crack repair, wiring and modification work.
  • Completely versed on new construction of electric and acoustic guitars, from the planning and design phase to final product.
  • Instructed in all phases of managing a full service repair shop as part of his training at Roberto Venn School of Luthiery.
  • Trained personally by Dave Moore in the area of guitar sales and accessory sales, in addition to his repair duties at King Music Center and Marc’s Guitar Center.
  • Great at improvising and solving difficult problems as they arise.
  • Good woodworking skills essential to this position.
  • Ongoing commitment to furthering his skills and knowledge of fretted instruments, in order to provide extensive repair services to clients.
  • Plays in a local band: “Tanuki.”

7.3 Management Team Gaps

We believe we have assembled an excellent team of employees that will complement each others’ knowledge and skill levels. We feel weakest in is the band instrument repair department. As soon as finances permit, a knowledgeable repairman with this background would be highly desirable. We already know of one excellent candidate, who is currently working for Albuquerque public schools. The addition of this person will be a huge benefit for our store.

7.4 Personnel Plan

The personnel plan highlights our intent to hire as few employees as possible, in order to keep control over how our customers are treated during the crucial first stages of our business. We will have two full-time salespeople and two to three part-time employees to call upon as traffic demands. In addition, all key employees have agreed to work at lower pay structures to keep personnel costs at minimum during the critical first two years.

Financial Plan investor-ready personnel plan .">

We expect revenues and sales to increase dramatically between the second and fourth years of operation. After that high growth period, we expect growth to be steady and stable for the foreseeable future. This industry is very susceptible to consumers’ judgements about the store based on inventory, brands offered, pricing and staffing. It is crucial that we generate sufficient cash reserves during the growth years to be able to jump on future opportunities, allowing us to increase our market share.

8.1 Important Assumptions

The financial plan depends on certain assumptions, most of which are shown in the following table. The key assumptions are:

  • Economy proceeding, as in recent trends, of 2 to 4% annual growth.
  • No new major band and orchestral competitors on a large scale within the next two years in our direct vicinity.
  • No unforeseen changes with our major vendors in regards to lines carried.
  • No major change in our relationship with China or other foreign governments that would hinder product supply.

8.2 Projected Profit and Loss

If we take advantage of the current market conditions in Albuquerque, we can achieve great gains in market share during our start-up year and beyond. Our assumptions for sales are conservative compared to industry averages in similarly sized markets.

Musical instrument store business plan, financial plan chart image

8.3 Break-even Analysis

For break-even analysis purposes, we are assuming per month running costs as shown below. Payroll on its own is a substantial portion of these costs. The break-even assumptions are based on the personal experience of the co-owner, David Moore, based on his actual experiences as manager of King Music Centers, Inc., and Marc’s Guitar Center for an average month’s need. We believe we can achieve higher than industry average margins by selectively choosing products that allow these margins to be possible, and by value-added marketing of these products and related services.

Musical instrument store business plan, financial plan chart image

8.4 Projected Cash Flow

Our cash flow projections show only a slight negative cash flow that our cash “in bank” will easily allow us to cover, without the need for accessing additional lines of credit financing. We will maintain a positive cash balance throughout the foreseeable future.

Musical instrument store business plan, financial plan chart image

8.5 Projected Balance Sheet

The projections in the balance sheet are quite solid. We do not anticipate any trouble meeting our debt obligations as long as we follow through with the plans and strategies set forth in this business plan.

8.6 Business Ratios

The following table shows industry relevant ratios as determined by the standard industry classification index (SIC) under category 5736 – Musical Instrument Stores.

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How To Write a Winning Music Artist Business Plan + Template

Record Label Business Plan Template

Creating a business plan is essential for any business, but it can be especially helpful for music artist businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every music artist company should include in their business plan.

Download the Ultimate Business Plan Template

What is a Music Artist Business Plan?

A music artist business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Music Artist Business Plan?

A music artist business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Music Artist Business Plan

The following are the key components of a successful music artist business plan:

Executive Summary

The executive summary of a music artist business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

  • Start with a one-line description of your music artist company
  • Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your music artist business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your music artist firm, mention this.

You will also include information about your chosen music artist business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a music artist business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

  • What part of the music artist industry are you targeting?
  • How big is the market?
  • What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the clients of a music artist business may include booking agents, music venues, and festivals.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or music artist services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your music artist business may have:

  • Unique music artist style
  • Strong industry presence
  • Extensive music artist repertoire
  • Innovative music artist techniques
  • Highly experienced management team

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

  • Product/Service : Detail your product/service offerings here. Document their features and benefits.
  • Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
  • Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
  • Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your music artist business via word-of-mouth, referrals, or by exhibiting at trade shows.

Operations Plan

This part of your music artist business plan should include the following information:

  • How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
  • What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a music artist business include reaching $X in sales. Other examples include:

  • Signing a major artist
  • Opening a new location
  • Hiring key personnel

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific music artist industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

  • Revenue : how much revenue you generate.
  • Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
  • Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Music Artist Firm

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

  • Assets : All of the things you own (including cash).
  • Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
  • Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Music Artist Firm

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

  • Cash Flow From Operations
  • Cash Flow From Investments
  • Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup music artist business.

Sample Cash Flow Statement for a Startup Music Artist Firm

You will also want to include an appendix section which will include:

  • Your complete financial projections
  • A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
  • Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your music artist company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

Remember to keep your business plan updated as your company grows and changes. Review it at least once a year to make sure it is still relevant and accurate.  

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Related Content

Business management: how to manage a business for long-term success.

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Published: May 31, 2024

Knowing how to manage a business – including how to adapt for the future – can be crucial for your company to survive and thrive.

How do you keep your company alive and build something that will last? It can take more than just a great idea and hard work to successfully run a business. If your company is to survive and thrive, it should be highly adaptable to market changes and provide competitive and superior service. 

Businesses fail for several reasons, including poor leadership, cash-flow problems, and the inability to shift with the times. Knowing how to run a successful business for the long term can be crucial.

This article will address the factors impacting long-term business success and provide expert tips for how to manage a business to help ensure survival and longevity. 

Understanding the Business Landscape

Looking at the survival rate of companies that started in March 2013 up until 2023, the U.S. Bureau of Labor Statistics shows that approximately 20% of new businesses failed after the first year and only approximately 35% survived for 10 years or longer.

Here are the key survival statistics for U.S. businesses started in 2013:

New U.S. Business Survival Rates

Based on the Bureau of Labor Statistics numbers , these survival percentages have remained consistent over the years. So, no matter what changes are happening in the economy, an approximate 50% survival rate after five years or an approximate 35% survival rate after ten years in business can be expected.

A solid understanding of your business landscape can be a good start for navigating the continuously changing market complexities and ensuring long-term business success. To make smart decisions that contribute to the survival and prosperity of your company, consider taking into account these factors:

1. The Importance of Data-Driven Decisions

Random business decisions can lead to failure. Data-driven decision-making is using data to guide and validate your action plan before committing to it. This can take various forms, such as conducting surveys to determine products or services that might appeal to your target market, or introducing a new service or product to a small subset of the population to see how people react to it and gauge its potential success. 

2. The Significance of Key Performance Indicators (KPIs)

Key performance indicators can be essential for the long-term health of your business. One of the many benefits of KPIs is that they provide indicators to help you identify when to take action. They show you when things are going well or when it’s time to act. Examples of some essential KPIs include:

  • Customer acquisition cost: This is the money you need to acquire a customer. It includes the cost related to sales and marketing activities and the overhead of bringing in fresh leads and converting them into customers.
  • Net profit margin: This is the percentage of revenue that remains after deducting your operating expenses.
  • Accounts receivable days: This tracks the average time it takes for a customer to pay an invoice. It helps you measure your cash flow.

3. The Value of Your Customer Base

Your customer base is the group of people who regularly purchase your company's products or use its services. These most loyal customers are valuable to your company's financial health. Identifying who they are and why they use your products or services can help you revise your marketing strategies to attract your target demographic and acquire more customers. Growing your customer base can be critical to sustainable growth. 

Importance of Business Analysis

Management success can hinge on a thorough business analysis, which can help you address the factors affecting or limiting your business growth. This analysis can help you review your current operations and decide what changes might be necessary for the success of the company. 

Examples of key factors to analyze include:

  • Your marketing strategies
  • Your customer acquisition process
  • Your sales process
  • Your use of technology
  • Your differentiation

A comprehensive business analysis can be critical to maintaining your company's stability and longevity and growing your business profitably. It can also help you outperform your competitors by enabling you to define your customers’ needs and create the right products and services.

Take the crucial factor of customer acquisition, for example. The core of customer acquisition success is a clear understanding of your target customer, which you can use to make sound decisions about product development, pricing, and marketing strategies. Some questions to ask yourself as you analyze your customer acquisition process include:

  • Who do we sell to? 
  • How can we meet and exceed their needs and expectations? 
  • What drives their purchasing decisions? 
  • What communication channel do they prefer?

Building a Strong Foundation

Trust is at the heart of every long-lasting business. When planning how to run a successful business for the long term, gaining your customers' trust may be one of the most valuable qualities your company can develop. PwC's 2024 Trust Survey shows that 93% of executives agree that trust accelerates the bottom line. (The survey included 548 business executives, 2,500 consumers and over 2,000 employees in the United States across various industries.)

Here are some actions you can take to help build trust for long-term success: 

  • Keep a close eye on metrics that are in line with building trust between your company and your customers and employees. 
  • Recognize and address any gap in trust. The PWC survey reveals that while 90% of business executives think customers trust their companies, only 30% of consumers actually do.
  • Prioritize providing excellent customer service. 
  • Create a culture of trust with your employees.
  • Be diligent about maintaining your company's reputation.

To thrive in the long term, you may need to revamp your business strategy to sustain growth. Some ways to do this: 

  • Investing in enhanced technology and infrastructure
  • Exploring untapped markets 
  • Adding new locations, if feasible
  • Looking for franchise opportunities
  • Developing a broader product line 

Developing a Business Plan

Other recommendations on how to manage a business for the long term include the importance of proper planning. Planning can be vital to management success in the long run. Business owners often talk about business plans in relation to startups. But business plans should be a living, ongoing process that evolves with the company. 

This means that in an era of environmental and political challenges and rapidly evolving customer expectations and demands, how to manage a business for the long term calls for a regular review and adaptation of the strategies shaping your company in the coming years. You can no longer rely on just maintaining the status quo.

Think of your business plan as a business survival plan. If sales are down, your plan should consider detailing how you intend to improve your financial performance , e.g., by cutting costs and boosting sales. Address actions for the short term (1 to 6 months), medium term (6 months to 18 months) and long term (18 months and beyond).

Today's business plans should also consider addressing an exit strategy if you must leave your company for health reasons or to pursue other avenues. This includes planning the timing and type of exit. For example, you could sell the business or pass it on to a family member. You might decide to close the company or go for a phased exit. A phased exit is the chosen route if you want to leave the business but not exit it completely. It's a way of gradually handing over a company to a new owner who is still being trained and whose stake in the company grows as he takes on increasing managerial responsibility. Planning may allow you to maximize your return when the time comes. 

The Path to Business Prosperity

In addition to laying a solid foundation for your company, here are five keys for how you can run a successful business over the long haul in today's business environment:

1. Be flexible with where and how employees work. 

Top talent can be more important than ever to help ensure your company's survival. In today's environment, employees expect more flexibility. If you want to attract the best talent, giving people a choice of remote work or work schedules that offer flexibility can be an effective strategy to lessen the likelihood of losing the top talent you need. 

2. Broaden your vendor and supplier base.

In this time of economic uncertainty , it's important to diversify your vendor or supplier list. Diversification can help provide stability in the face of uncertainty. By spreading out your supply sources, you can help reduce your dependence on any one particular source. This can help mitigate the risks of disruption in the supply chain, which can harm your company's survival. Consider, as well, shifting from a global supply to a domestic supply source to help handle supply chain instability.

3. Reinvent your business.

A company should consider reinventing itself from time to time if it wants to stay in business. Forty-five percent of the CEOs surveyed in the 2023 PwC Global CEO Survey believe their company will not be viable in ten years if it stays on its current path. (The survey was based on responses from 4,702 CEOs across 105 countries.) 

One of the major challenges in today's business landscape is not launching a new company but ensuring its longevity amidst constant market fluctuations and ever-growing competition. 

Examples of reinvention strategies to consider include adopting new technologies related to your business and forming strategic partnerships that can enhance your business.

4. Have an aggressive strategy to cut costs.

During times of economic uncertainty, cost control can be critical. Look at your budget line by line, prioritize essential expenses, and allocate less of the budget towards items that are not essential for survival. For example, a small restaurant might choose to spend less on marketing. 

5. Prioritize speed.

Speed is paramount in today's rapidly changing business environment. This means remaining vigilant and responding quickly to changing trends that can affect your business. 

Take inspiration from what happened when the pandemic first erupted. Many companies had to accelerate their decision-making and other processes, empower front-line staff, and adopt new technology overnight. 

Some ways you can adopt a speed culture now to be prepared for long-term success include:

  • Delegating decision-making 
  • Flattening your company hierarchy with fewer middle managers to allow people to execute rapidly without the burden of bureaucracy
  • Addressing poor leadership skills by developing tomorrow's leaders who are agile, have the necessary resilience to persevere, and are capable of tackling obstacles and taking on new challenges

Refine the Business Process

A company's processes are the backbone of all operations, from onboarding to shipping.  As your company expands and evolves, you can help ensure long-term business success by continuing to refine your business processes to create good corporate habits.

Processes encompass various elements, such as:

  • Systems for recruiting and talent development
  • Performance management procedures 
  • Feedback systems 
  • Decision-making structures
  • Sales processes
  • Customer service guidelines
  • Business development processes

These and other processes are an integral part of management success and can provide the necessary structure and consistency for your business to run smoothly in the long run.

Set up metrics to track how well your processes are working and refine them as needed to help ensure ongoing success. 

Making large-scale changes to your business processes takes time and can be overwhelming. Consider making incremental changes as you go along. Take inspiration from the Japanese idea of kaizen , which entails making small, manageable changes over time to achieve large-scale benefits.

Staying Ahead in the Competitive Landscape

Having a competitive edge starts with an awareness of the factors that can impact your business's success . Examples of common pitfalls include:

  • Not conducting regular analyses of your competition
  • Having a low awareness of the market demand for your product or service
  • Not adjusting your pricing strategy to the market
  • Poor leadership at the top
  • Not having the right team to help you scale your business

To avoid these pitfalls and remain competitive, consider these tips:

1. Know your competitors.

What makes people buy from them?

2. Understand your unique selling point.

What sets you apart from the competition? Is it exceptional customer service, outstanding quality, or special and unique features of your product? By emphasizing these advantages, you can help persuade customers to opt for your products or services over those of your competitors.

3. Know where you can improve.

What can you improve to stay ahead of your competitors? Innovation ideas can come from your own research and ideas from staff, customers, and suppliers. They can also come from analyzing customer complaints or learning from mistakes. Your competitors are likely continually improving what they offer. You need to do the same if you are going to stay one step ahead of the competition. 

4. Adopt the right pricing strategy.

What about your pricing strategy? You can compete on price by adopting the lowest price point in the market for your product or service. This doesn't inherently imply a reduction in quality. Instead, it would involve streamlining your processes, making your operations as efficient as possible, and keeping costs low to offer your goods and services at the most economical price.

5. Be prompt. 

Speed can also give you a competitive advantage. People value speed, so prompt service or product delivery can make your company stand out.

6. Maintain your relevance.

It can be crucial to evaluate the demand for your product or service regularly. You may need to adapt to changes in the market and evolve your company.

7. Invest in leadership. 

Prepare your leaders and teams to thrive in a competitive world by investing in leadership training and development and building exceptional teams that will help your company stand out.

8. Consider the future.

Companies that prepare for growth may be more likely to survive than those that remain stagnant. Keep abreast of the most recent advancements in your industry, closely monitor consumer trends, and consider investing in cutting-edge technology that can accommodate the growth of your business.

The Takeaway

One of the major challenges in today's business landscape is not launching a new company but ensuring its longevity amidst constant market fluctuations and ever-growing competition. To help ensure long-term success, consider these tips:

  • Make data-driven decisions to ensure that you are guided by cold and hard evidence.
  • Measure the right KPIs to monitor your company's health and make adjustments.
  • Know your customer base and its crucial significance to your long-term success.
  • Conduct a thorough business analysis regularly to help you identify potential roadblocks in your current operations and plan for ways to overcome them ahead of time. 
  • Build a strong foundation based on trust.
  • Periodically refine and revamp your business processes to help you adapt to market changes and disruptions.
  • Create a dynamic and evolving business plan.
  • Leverage the capabilities of new technologies.
  • Consider the moves to running a successful business for the long haul: being flexible with employee work arrangements, diversifying your vendor and supplier base, reinventing your business to avoid stagnation, adopting an aggressive cost-cutting strategy, and prioritizing speed.
  • Focus on gaining and maintaining a competitive advantage to help you plan strategically.

Photo: Getty Images

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Best Free Cloud Storage for 2024: What Cloud Storage Providers Offer the Most Free Storage?

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business plan for a music management company

When money's tight, getting your hands on some free cloud storage is a good feeling. The problem is that many plans offering free storage come at a price not expressed in money, either through data mining or other practices that can't stand the light of day. We vetted several providers and came up with these best free cloud storage services.

Aleksander Hougen

Last Updated: 12 Apr'24 2024-04-12T15:50:43+00:00

All our content is written fully by humans; we do not publish AI writing. Learn more here.

Key Takeaways: What Is the Best Free Cloud Storage:

  • pCloud — Best overall free cloud storage with 10GB free and file syncing
  • Sync.com — 5GB free online storage, best for security
  • Icedrive — 10GB free, best fast cloud storage
  • MEGA — Whopping 20GB, second largest free cloud storage provider
  • Google Drive — 15GB free cloud storage for photos
  • OneDrive — 5GB free cloud storage but with a 100GB file size limit
  • Koofr – 10GB of free space with great security and privacy
  • Dropbox — 2GB free online cloud storage with good syncing capabilities
  • iCloud Drive — 5GB free online storage for Apple users
  • MediaFire — 10GB free bare-bones file storage
  • Degoo — 20GB free cloud storage

If you’re having second thoughts on spending money on cloud storage services, you’ll be pleased to know that there are a lot of free cloud storage providers that will allow you to store your data online, share photos and videos, or listen to your favorite music. Here’s our list of some of the best free cloud storage plans on the market today.

We’ve got 11 providers here, from pCloud, which offers up to 10GB of free storage and lots of features, to Degoo, which offers a staggering 20GB but not much else, and everything in between, each with varying storage limits and features. We’ve tried to strike a balance between the two, as having lots of storage only goes so far if the service doesn’t offer much else.

If you’re not interested in the details and just want a quick rundown of which free cloud storage plans are available, we’ve included a table that you can consult at the bottom of this article.

Updated and expanded ranking with new providers and information.

Updated Sync.com’s plan and storage information.

Removed Amazon Drive as an option following Amazon’s announcement that the company was shutting Drive down in 2023.

Added new information regarding MEGA’s security architecture.

Updated the article to remove IDrive as an option, due to changes in the free storage allotment.

We added more information about our testing and evaluation practices, and updated the information about MediaFire.

Added new and up-to-date video round-up

Updated to reflect Icedrive’s changes in pricing plans and cloud storage offers.

Updated the amount of free storage Degoo offers.

Comparison of Free Cloud Storage Plans

Logo: Icedrive

How We Chose the Best Free Cloud Storage

To review a service, we first use it for around a week, putting it through the wringer and testing every feature it offers. We place the highest importance on security, but general usability features, like reliable syncing and good speeds play a major part in our decision-making process. We also run technical tests for speed, and CPU and RAM usage.

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The first — and most obvious — criterion for this list is that the cloud storage service in question has to offer a free plan, and the bigger the better. Beyond that, the standard criteria for cloud storage apply: features, speed, ease of use, security, privacy and customer support. 

One thing to note is that beyond our top six providers, your options become either very niche (as is the case with iCloud), mediocre (like Koofr or Dropbox) or downright bad, such as MediaFire and Degoo. Still, we’ve included them on the list just in case none of the higher ranked options seem like the right pick for you.

Best Free Cloud Storage Apps & Services in 2024

The 11 Best Free Cloud Storage Options

Without further ado, let’s jump into our list of the 12 best cloud storage providers that offer free plans, ranging from 2GB all the way up to 50GB. We’ll kick things off with our favorite, which is pCloud.

1. pCloud : Best Free Storage Cloud

pcloud drive backup page

More details about pCloud:

  • Free storage : 10GB
  • Provider website : pcloud.com
  • 10GB of free cloud storage
  • Built-in multimedia playback
  • Unlocks extra storage via referrals
  • Encryption requires a paid subscription
  • No productivity app support

Let’s start with our favorite free provider. As our earlier pCloud review shows, we’ve been big fans of this free cloud storage provider for a while because it’s an all-rounder, offering lots of free cloud storage with great security and premium playback options for your media content.

Some free cloud storage plans offer a lot of space, but on a temporary basis. pCloud’s 10GB offer is yours for good — no limits, no problems. You’ll need to do a few additional tasks to get the full 10GB, such as refer other users to pCloud; otherwise, you’ll be left with a fairly basic 2GB.

Best Free Cloud Storage for Music & Videos

Aside from storage, pCloud’s built-in HD media player for videos makes it a good place to store your favorite TV shows and home videos, earning it the “best free cloud storage for videos” title. It’s also one of the best free cloud storage options for music, thanks to an impressively designed media player that lets you build your own playlists from your saved music files.

free cloud storage solutions pcloud

The only features you’ll be missing on pCloud’s free cloud storage plan are password protection for files, expiry dates for publicly shared files and zero-knowledge encryption for your important documents. If this is a problem, you can upgrade to pCloud Premium with either or of storage, starting at per month. There’s also a pCloud Lifetime plan.

  • + FREE Encryption
  • Price per user (minimum 3)
  • Encryption for pCloud Drive

2. Sync.com : Best Free Private Online Storage

sync.com best online storage platform

More details about Sync.com:

  • Free storage : 5GB encrypted cloud storage
  • Provider website : sync.com
  • Strong privacy laws
  • No file size limit
  • Good security features
  • Only 5GB of free space
  • Certain file-sharing & versioning features not in the free plan

If pCloud doesn’t appeal to you, we recommend that you take Sync.com for a spin as our best pCloud alternative . You can check out our Sync.com review first for a more detailed look at the service.

Sync.com offers 5GB of free cloud storage . That’s enough to give it a go, but once you start using it, you may find it hard to resist the temptation of upgrading to 200GB or 2TB of storage. There’s also no file size limit, making it one of the best cloud storage options for large files .

If you’d prefer “free” to mean free, and you don’t mind a bit of hustle, you could take advantage of Sync.com’s generous referral system. Get real people to sign up to use Sync.com (they have to be real; Sync.com does check), and you’ll gain an extra 1GB free cloud storage per signup. Although 20GB is the cap, the company has been known to remove it if you email them.

Best Cloud Storage for Security & Privacy

Sync.com is the best zero-knowledge cloud storage provider out there, with AES 256-bit file encryption and two-factor authentication included as standard (it’s also our best encrypted cloud storage provider). 

Strong privacy laws from Canada (where Sync.com is based) help to make it one of the most secure cloud storage providers on our list too. It has premium features aplenty, with a month of file history, password protection for your files, remote file wiping and easily accessible account logs available for free. 

sync.com free accounts

If you’re wondering how Sync.com and pCloud fare against each other in our free cloud storage battle, our Sync.com vs pCloud comparison should help, but they’re both at the top of our best cloud storage for sharing and the cheapest cloud storage services .

  • Price per user
  • Unlimited GB
  • Minimum 100 users, custom requirements, account manager, training options

3. Icedrive : Fastest Free Online Storage

non us storage icedrive

More details about Icedrive:

  • Free storage : 10GB 
  • Provider website : icedrive.net
  • Great security & privacy
  • Reasonable prices
  • Easy to use
  • Lifetime plans
  • Lacking in features
  • Bandwidth cap on lifetime plans
  • Not zero-knowledge on free plan

While it’s new to the cloud storage scene, Icedrive is already an excellent provider that offers 10GB of free space for anyone who signs up. As we cover in our Icedrive review , it also offers top-notch security and privacy, a beautiful and easy-to-use interface and lifetime storage plans.

It’s also one of the fastest cloud storage services out there, and the best cloud storage for Linux and other operating systems.

The biggest downside to Icedrive is the relatively sparse feature set. Features like block-level syncing, collaboration tools and upload links for folders are all missing. Despite these omissions, it still makes for an excellent basic cloud storage option if what you’re looking for is a way to sync files between multiple devices and share them with other people.

Icedrive Security & Privacy

Where Icedrive really shines is with security and privacy. It offers strong encryption via the Twofish protocol and is also zero knowledge, meaning that no one can access your files but you. Unfortunately, only users on one of the paid plans get access to the zero-knowledge folder.

The company also offers a great degree of transparency in that you can download all the personal data it has on you, and it’s GDPR compliant to boot.

Mac cloud storage Icedrive CTA

Beyond the free 10GB of storage you get instantly upon signup, Icedrive also offers some very reasonably priced paid plans that you can upgrade to if you require more space. The three plans come with 100GB , 1TB and 3TB of storage — and Icedrive took the top spot in our list of the best 1TB cloud storage plans. 

  • Bandwidth limit: 50GB
  • Bandwidth limit: 250GB
  • Bandwidth limit: 2TB
  • Bandwidth limit: 8TB
  • Additional 128GB storage for users who purchased the Lifetime Plan
  • Additional 512GB storage for users who purchased the Lifetime Plan
  • Additional 2TB storage for users who purchased the Lifetime Plan

4. MEGA : Second Biggest Free Cloud Storage

mega computer client

More details about MEGA:

  • Free storage : 20GB
  • Provider website : mega.io
  • Strong emphasis on privacy
  • 20GB free storage (35GB for 1 year)
  • Speeds aren’t the best
  • Lacks collaboration features & third-party integrations

MEGA is another service that makes it onto our overall top-ranked cloud storage, and a large part of that is its very generous free plan. At 20GB of free storage , no strings attached, it provides more free space than any other quality service on this list (emphasis on quality ). You can further increase this generous allowance by completing what MEGA calls “achievements.”

These are mostly simple tasks such as installing the desktop and mobile apps as well as verifying your mobile phone number for two-factor authentication. Each of these will net you an additional 5GB of storage, valid for one year, for a total of 35GB. You can also invite friends for an additional 5GB per invite.

MEGA’s Focus on Security & Privacy

Like Sync.com, MEGA also provides zero-knowledge encryption for your files. We talked about MEGA’s ultimate focus on privacy in our MEGA review — something that originates from its founder, Kim Dotcom. His unfortunate notoriety helped to push MEGA into the public sphere, and although he’s long since left the company, his ethos remains in the company tagline: The Privacy Company.

Unfortunately, a 2022 cryptographic report revealed serious problems with the service’s encryption process. That said, it’s in MEGA’s interest to be a zero-knowledge company, as it’s what gives them the plausible deniability to avoid the fate of Megaupload, its infamous predecessor.

mega additional storage

There are also some innovative, stand-out features included with MEGA, even with its free account, from end-to-end encryption for secure chats to integrated file recovery and versioning. That said, it didn’t quite win our pCloud vs MEGA and Icedrive vs MEGA comparisons, which is why it occupies a lower spot on our list, despite its large amount of free storage space.

  • File transfer: 2TB (Monthly plan) 24TB (yearly plan)
  • File transfer: (monthly plan) 96TB (yearly plan)
  • File transfer: 16TB (monthly plan) 192TB (yearly plan)
  • Price per user (minimum 3) 3TB Transfer quota

5. Google Drive : Best Free Cloud Storage for File Sharing

share files online google drive

More details about Google Drive:

  • Free storage : 15GB
  • Provider website : google.com/drive
  • Integrates with Google services
  • Great for collaboration
  • 15GB free cloud storage
  • Extremely easy to use
  • Unclear privacy regulations
  • No private encryption
  • Terrible privacy track record

It would be madness if an article about the best free online cloud storage did not include Google Drive. As our Google Drive review shows, it’s one of the best free cloud services, thanks to its seamless integration with Google Docs. Plus, there’s a generous 15GB storage limit which makes it the best cloud storage for students and free users.

You don’t have to do anything if you already have a Google account, as the Google Drive storage is included as standard. This storage applies to Drive, Gmail and other Google products, such as Google Photos, one of the best free cloud storage for photos .  

This suite of apps is arguably Google Drive’s greatest strength, as it comes with tools and apps for almost any type of files, whether it’s documents and spreadsheets or photos and videos.

Free Storage at the Cost of Privacy

There are some privacy concerns (after all, it is Google), which may be off-putting and it’s why it falls behind MEGA in this article. Google has been known to scan your files without permission, and if they don’t like what they find, they’ll terminate your account. It’s something to keep in mind if privacy is your main focus, especially as Google Drive doesn’t include file encryption.

Although we’ve gotten used to free products coming at the cost of user privacy, Google is one of the most egregious offenders in this arena, with more scandals under its belt than we have the space to list.

google drive plans

Granted, you might not necessarily care about the privacy of the files you upload to your free cloud storage, in which case there’s probably no better option than Google Drive. However, free and private cloud storage exists, so if you’re at all concerned with your online privacy, consider one of the options above instead.

  • *The plan is "hidden." To find the 200GB plan, you need to be subscribed to one of the other plans, upgrade or downgrade to the 200GB through your account's settings.

6. Microsoft OneDrive : 5GB free cloud storage

Best offline storage OneDrive

More details about Microsoft OneDrive:

  • Free storage : 5GB
  • Provider website : onedrive.com
  • Integrates with Office 365 & Windows
  • Good collaboration tools
  • No zero-knowledge security
  • Limited features on free plan

We’ve covered Google Drive, and the cloud storage solution offered by Microsoft is pretty similar, integrating cloud storage with Microsoft’s ever-popular Office and Outlook services, as well as the Windows operating system itself. We’ve compared Google Drive vs OneDrive in a separate review, but take a look at our OneDrive review for a clearer picture of the service on its own.

Free users get 5GB of storage included with their plan, with a 250GB file size limit (read our guide to OneDrive’s file size limit ). You can use this storage with Microsoft’s mobile and desktop apps, or through its direct integration with Office apps. For instance, you can save Word documents and other Microsoft Office files straight to your OneDrive storage. 

This level of integration is why OneDrive’s business storage plan made it onto our best cloud storage for collaboration short list.

OneDrive, Windows & Microsoft 365

Not only does OneDrive integrate with Microsoft 365 directly, it’s also bundled with it, which makes it especially attractive if you need the document suite anyway. OneDrive also blends in perfectly with Windows, to the extent that there are probably plenty of users who don’t realize that it’s not just a regular folder on their computer.

Onedrive homepage 2021

If you prefer Office apps over the likes of Google Docs and value the built-in integration with Windows, then OneDrive is a great option for free cloud storage, despite only offering 5GB . However, just like with Google, Microsoft’s history with privacy is a little patchy, especially with its suspected involvement in the PRISM program.

  • For one person
  • Comes with Office 365 Personal
  • Comes with Office 365 Home

7. Koofr : 10GB Online Storage With GDPR Protection

koofr office

More details about Koofr:

  • Provider website : koofr.eu
  • Based in the EU
  • Paid plans are expensive
  • Somewhat light on features

Koofr is a small cloud storage company from Slovenia that recently upgraded its free storage plan. You now get 10GB of storage for free, but there’s no achievement or referral program to expand this further. Because of its location in the European Union, all of Koofr’s customers are protected by the GDPR, and the service scores well for both security and privacy.

The biggest problem with the service (apart from the price of its paid plans) is the fact that it lacks zero-knowledge encryption. Still, the same is true for many others on the list, and Koofr certainly seems more trustworthy, at least in terms of user privacy, than the likes of Google.

Third-Party Integrations

Not only does Koofr integrate with Microsoft Office, allowing you to create and edit documents directly in its app, it also lets you link other cloud storage accounts so that you can manage files stored with all of them from one place. 

This feature supports Google Drive, OneDrive and Dropbox, and the service can also import media directly from your Facebook account. This means that you can take advantage of the free plan of all four cloud storage services — totaling 32GB — and access it all from the same app.

koofr home screen

Although it’s not the most feature-heavy cloud storage service out there, and its paid plans are needlessly expensive, for a free storage solution Koofr is a pretty good option. If you’d like to learn more about this secure cloud storage service, make sure to check out our full Koofr review .

  • *Prices in Euro

8. Dropbox : The Grandfather of Cloud Storage

file sharing online dropbox

More details about Dropbox:

  • Free storage : 2GB; expandable to 16GB with referrals (500MB each)
  • Provider website : dropbox.com
  • Good syncing capabilities
  • Free storage of up to 16GB
  • Great speeds
  • Only 2GB of default storage
  • Previous data breaches
  • Not the best for privacy

Dropbox is the daddy of all cloud storage providers, and its syncing capabilities make it one of the best cloud storage with sync . It’s the cloud provider that made the whole idea of cloud storage seem possible back when it launched in 2007, and although it isn’t the best cloud drive available these days, it’s decent overall and worthy of a spot on this list.

It’s still a quick, easy-to-use online storage option for users, but even though you can get a free Dropbox account , you only get 2GB of free storage , which is less than almost every other provider on this list, and nowhere near MEGA’s allowance. 

You can expand your Dropbox free storage by 250MB by completing at least five steps in the tutorial (things like installing the desktop and mobile apps, uploading files, taking the tour, etc.) and a further 16GB by referring friends at 500MB per invite.

Another big problem with Dropbox is the lack of features on the free plan. You can see the full list in the table at the end of the article, but features like the vault, smart sync, Dropbox Transfer, e-signatures, unlimited devices and offline access are all either completely missing or severely limited. You can find out more about these features in our Dropbox review .

Dropbox Sync Features

It’s not surprising that the granddaddy of sync-based cloud storage has some of the most advanced syncing features on the market. 

This includes a highly efficient block-level sync, which enables high transfer speeds, making Dropbox one of the fastest services we’ve tested. There’s also selective sync, which gives you more control over which files you sync and whether or not you need both a local and a cloud copy.

dropbox free cloud storage services

At the end of the day, Dropbox is a competent cloud storage solution, but its limited free plan means that there are a lot of better options if free storage is your main criterion. This is especially true as several of Dropbox’s headlining features like selective and block-level sync lose a lot of their utility when you’re limited to just 2GB of storage.

  • (Formerly Dropbox One) 1 user Signature requests and eSignature templates
  • 3 users minimum

9. Apple iCloud : Free Space for Mac and iOS

icloud backup features

More details about Apple iCloud:

  • Provider website : icloud.com
  • Seamless integration with Apple devices & apps
  • Difficult to use on non-Apple devices
  • Few native features

In a similar vein as both Google Drive and Microsoft OneDrive, Apple’s iCloud is a service that combines with other products to become more than the sum of its parts. It offers 5GB of free storage, and if you’re an Apple user, it is probably easier to set up and use than any other service on this list. However, for anyone who isn’t invested in the Apple ecosystem, the service isn’t really worth considering.

That said, iCloud is reasonably priced if you want to upgrade to more storage, and it’s probably a slightly more private option than other major cloud storage services like Google Drive or OneDrive.

Integration With Apple Devices & Apps

On its own, iCloud is unimpressive. It lacks most of the advanced or unique features offered by providers like Sync.com, nor does it focus on security and privacy like MEGA or Icedrive does. Instead, iCloud relies on its integration into the wider Apple ecosystem. This includes not only hardware like iOS devices and Macs, but also software such as Apple Pay, Safari and others. 

This is a bit of a double-edged sword, as this reliance on the wider ecosystem leaves those with other devices out in the cold, despite creating an exceptionally streamlined user experience.

best cloud storage icloud cta

It’s hard to recommend iCloud to anyone but the most dedicated Apple user, and even then the service provides no alternative for collaboration, as it doesn’t integrate with Google Docs or Microsoft Office. Still, 5GB of free cloud storage is very useful if you have an iPhone or iPad, so check out our full iCloud Drive review to learn more if that describes you.

10. MediaFire : Bare-Bones Free Space

web interface mediafire

More details about MediaFire:

  • Provider website : mediafire.com
  • Good free storage
  • Limited information on security & privacy
  • No desktop apps
  • Limited features

With our last two providers, we start scraping the bottom of the barrel for free cloud storage. Just because something is free doesn’t necessarily mean that it’s great, or even good. We described MediaFire as “bare-bones” in our earlier MediaFire review , and that’s still the case with this service, which sits near the bottom of our list.

Let’s start with the good, because we’re talking about file storage that costs you nothing, and that’s exactly what MediaFire offers. Free users receive 10GB of space for free, although you can increase the free 10GB up to 49GB with sign-up referrals, and gain 200MB each for installing the mobile app, connecting your Twitter account and tweeting about it.

MediaFire Free Plan Limits

Only the paid customers get all the goodies, unfortunately. On the free plan, MediaFire users can’t share files publicly, password-protect their files, access a security log or use MediaFire’s mobile apps for iOS or Android. 

You can drag and drop your files into the web app, but there isn’t a desktop app available. There are also ads built into the client, which is unusual for cloud storage, even when it’s free.

The most troubling part is that we simply don’t know whether MediaFire encrypts your data at all. It makes none of this information public, and the company’s customer support appears to be fictional.

mediafire cta

The only good thing there is to say about MediaFire’s free plan is that it’s free. When you combine the fact that it has almost no features, ads built into the free client and possibly no encryption whatsoever, it’s a difficult service to recommend.

11. Degoo : 20GB Free Cloud Storage

degoo review web app

More details about Degoo:

  • Provider website : degoo.com
  • 20GB of free storage
  • Mobile device support
  • Expensive paid plans

We’re always wary of providers that claim to offer outrageous amounts of storage, like 1TB free cloud storage. For our final entry, we’ve lowered our standards for acceptable free storage solutions, but that doesn’t mean we’re giving Degoo a free pass. Its 20GB of free storage is the only thing worth mentioning about this provider.

Degoo calls itself a cloud backup service. That means it doesn’t come with the day-to-day tools to improve productivity that Sync.com or Google Drive offer. File syncing isn’t included, and you can’t really share your files with others. The desktop program isn’t something we recommended in our earlier Degoo review , but the mobile apps aren’t bad, with support for Android and iOS.

Degoo Storage & Pricing

Although 20GB sounds incredibly generous on the surface, it’s actually not that much, given that there are backup providers that offer unlimited storage for less than $7 per month. That said, its paid versions are pretty cheap, though we have no idea why you’d want to give Degoo any money.

If we still haven’t discouraged you from checking out Degoo, head over to our full Degoo review for some more details.

  • *Prices are in GBP

Free Cloud Storage Plan Comparison

To make things easier, we’ve compiled a table of all the free plans mentioned above. We also clarify their storage quotas, whether or not (and how) you can expand them, and what (if any) limitations they have compared to their paid counterparts.

Final Thoughts: Free Cloud Storage

You’ve reached the end, so that means you’ve probably made a decision on which free cloud storage service you want to try. The good thing about the price — got to love those zeros — is that, even if you don’t like pCloud (our top recommendation), you can quickly switch to one of the other products, such as Sync.com .

However, that doesn’t mean you can ignore some of the other plans on our list. Google Drive (we also have a comparison on pCloud vs Google Drive ), OneDrive and iCloud are always going to get a mention, thanks to the ease with which they integrate with their respective ecosystems. You also can’t go wrong with the biggest free cloud storage that MEGA provides or the drag-and-drop simplicity that Dropbox offers.

Although there’s always a limit to what these companies can offer for free, if you don’t want to ever worry about storage and have some budget to spare, you can check out our article on the best unlimited cloud storage providers .

If you’ve used any of the products we’ve listed, or if you disagree with any of our comments, let us know about your experiences in the comments below. In your opinion, what is the best cloud storage for free? Are we missing an option on our list? As always, thanks for reading.

FAQ: Free Online Storage Services

pCloud is the best free cloud storage , closely followed by Sync.com and Icedrive . MEGA provides the most storage for free, whereas Google Drive is the best free cloud storage if you don’t care about privacy.

No, there is no such thing as free unlimited cloud storage, and you regard any such offer with a great deal of suspicion.

MEGA offers the biggest free cloud storage plan you can trust, with 20GB right out of the gate, which you can then expand to 35GB for a year.

Mega is best according to me. 20GB free storage with End to End Encryption.

We never trust any type of Chinese products

hello there.

I Love this content

Contrary to what has been said in some comments, Hubic is closing down this year for private users and now only serves businesses. Too bad ! It seems you missed a newcomer in Europe, Internxt, a Spanish company which claims to be highly secure and offers a free plan with 10 Gb. Otherwise, I agree with you on sync and pcloud being real good.

We actually have a review for internxt: https://www.cloudwards.net/review/internxt/

How is pcloud in the first place? they gave me 2gb storage and and additional 1gb after verifying my account. the rest is locked and no idea how to unlock it

At the top they say is for 2023, but is not even updated, degoo only offers 20 GB on its free plan. Plus other changes on its conditions.

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Tencent, Tencent Music to pick up 10% stake in Thailand's GMM Music for $70 mln

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Boeing Gives F.A.A. Plan to Address Systemic Quality-Control Issues

The action plan is the latest in a series of moves by the F.A.A. to push for safety improvements throughout Boeing during a tumultuous year for the company.

The white fuselage of a plane, with a sheet of plastic taped over an opening.

By Mark Walker and Niraj Chokshi

Boeing’s top executives delivered a plan to improve quality and safety to the Federal Aviation Administration on Thursday, vowing to address systemic issues that have damaged the company’s reputation and put the aircraft manufacturer at the center of several federal investigations.

Boeing detailed these and other steps during a three-hour meeting with the F.A.A.’s administrator, Mike Whitaker, where the company submitted a “comprehensive action plan” that the regulator ordered in February.

Mr. Whitaker had given Boeing 90 days to develop a plan to make sweeping safety improvements after a midcabin panel known as a door plug blew out of a 737 Max 9 jet flying at about 16,000 feet on Jan. 5. No one was seriously injured during the flight.

The F.A.A. said in a statement on Thursday that “senior” leaders from the agency would “meet with Boeing weekly to review their performance metrics, progress and any challenges they’re facing in implementing the changes.”

Boeing was also required to address findings, from an expert panel convened by the F.A.A. last year, that revealed persistent issues with the company’s safety culture. Mr. Whitaker said Boeing had accepted all of the recommendations the panel made in the report.

“We need to see a strong and unwavering commitment to safety and quality that endures over time,” Mr. Whitaker said during a news conference on Thursday. “This is about systemic change, and there’s a lot of work to be done.”

In a statement, Boeing said the action plan it delivered to the F.A.A. was based on feedback it received from employees and through conversations with the regulator. Boeing provided some additional detail on the actions it was taking to improve quality but did not make the safety plan public.

In an email to employees, Stephanie Pope, the head of Boeing’s commercial plane unit and the company’s chief operating officer, said the company is investing in training, simplifying plans and processes, eliminating defects and improving quality and safety.

The company has made some changes, including expanding training for new hires to 14 weeks from 10 weeks; helping managers spend more time on the factory floor and less time in meetings; increasing inspections at Boeing and at a top supplier, and ordering more tools and equipment.

“Many of these actions are underway and our team is committed to executing on each element of the plan,” David Calhoun, Boeing’s chief executive, said in a statement. “It is through this continuous learning and improvement process that our industry has made commercial aviation the safest mode of transportation. The actions we are taking today will further strengthen that foundation.”

The company has also conducted more than 20 meetings at sites around the world, pausing work to gather employee feedback on improving quality. More than 70,000 Boeing workers have participated, providing tens of thousands of comments, the company has said.

Mr. Whitaker, who met on Thursday with Mr. Calhoun, said he planned to continue to meet weekly with Boeing to make sure the actions were executed correctly and in a timely manner. Mr. Whitaker will meet with Boeing’s chief executive in September. Mr. Calhoun has said he plans to step down at the end of the year.

There is no timeline for Boeing to carry out the changes, Mr. Whitaker said.

He also said Boeing had developed six measures by which it and the agency would be able to track the company’s progress. The F.A.A. will also maintain heightened inspections of both Boeing and Spirit AeroSystems, a supplier that makes the bodies of the 737 Max jet. Boeing has said it plans to buy Spirit to gain more control over the quality of the parts it produces for the company.

The action plan is the latest in a series of moves by the F.A.A. to push for safety improvements throughout Boeing. The regulator limited Boeing’s monthly production of 737 Max jets and audited its production lines, and is investigating the company’s compliance with federal safety standards.

Mr. Whitaker said the F.A.A. would continue to put limits on Boeing until the agency was satisfied with the company’s progress. The regulator and Boeing have not yet discussed raising the number of Max jets that Boeing can produce in a month beyond 38, he said. Boeing is making the planes at well below that rate, but has said it hopes to accelerate production in the second half of the year.

“We will not approve production increases beyond the current cap until we’re satisfied,” Mr. Whitaker said during the news conference. “Bottom line, we will continue to make sure every airplane that comes off the line is safe and reliable.”

The Justice Department has also opened a criminal investigation into the Jan. 5 episode. A preliminary investigation by the National Transportation Safety Board suggested that the Max 9 plane might have left Boeing’s factory in Renton, Wash., without the panel bolted down.

Boeing also faces potential legal repercussions from crashes involving its planes. The Justice Department said this month that Boeing had violated a 2021 settlement reached after two 737 Max plane crashes killed hundreds in 2018 and 2019, and could be prosecuted on a criminal charge of conspiracy to defraud the F.A.A.

The Justice Department found that Boeing had failed to “design, implement and enforce” a compliance and ethics program that was a condition of the settlement. The company plans to contest the department’s determination.

That 2021 settlement had been criticized for being too lenient on Boeing and for being struck without consulting the families of the 346 people killed in the Max crashes, which were in Indonesia and Ethiopia and led to the grounding of the 737 Max fleet for 20 months. An investigation determined that both crashes involved the mistaken triggering of a maneuvering system designed to help avert stalls in flight.

Mark Walker is an investigative reporter focused on transportation. He is based in Washington. More about Mark Walker

Niraj Chokshi writes about aviation, rail and other transportation industries. More about Niraj Chokshi

Boeing: A Company in Turmoil

Plan To Fix Safety Issues: Boeing’s top executives delivered  a plan to improve quality and safety to the F.A.A ., vowing to address systemic issues that have damaged the company’s reputation and put the manufacturer at the center of several federal investigations.

Settlement Violation: The Department of Justice said that Boeing was in violation of a 2021 settlement  related to problems with the company’s 737 Max model that led to two deadly plane crashes in 2018 and 2019.

A New Investigation: The F.A.A. has opened an investigation  into Boeing after the plane maker told the regulator that it might have skipped required inspections involving the wings of some 787 Dreamliners.

A Huge Loss: Boeing reported a $355 million loss  for the first three months of the year, as it deals with a quality crisis stemming from a Jan. 5 flight during which a panel blew off one of its planes.

A CEO to Fix Boeing: The plane maker, which is searching for a new chief executive, is likely to consider a small number of people , including several former Boeing executives.

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COMMENTS

  1. Music Business Plan Template & Guide [Updated 2024]

    Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a music business plan, your marketing strategy and plan should include the following: Product: in the product section, you should reiterate the type of music that you documented in your Company Analysis.

  2. Music Business Plan Template (2024)

    12/15/2022 - Finalize personnel and staff employment contracts for the Musicians First Studio management team. 1/1/2023 - Begin build-out of the studio, purchase equipment, and test the acoustics. 1/15/2023 - Begin networking at industry events and implement the marketing plan.

  3. Music Business Plan: A Guide for Music Industry Professionals

    A music business plan is a comprehensive and detailed document that outlines the goals, strategies, and financial projections for a music-related business. Whether it's a record label, music production company, artist management firm, or any other music-related venture, a business plan provides a roadmap for success.

  4. Artiste Management Business Plan [Sample Template]

    A Sample Artiste Management Business Plan Template. 1. Industry Overview. Artiste management business is under the musical groups and artistes industry and this industry is composed of musicians, recording artistes and songwriters that produce music professionally, either in front of a live audience, in a recording studio or both.

  5. How To Write An Artist Management Business Plan + Template

    The executive summary of an artist management business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan. Start with a one-line description of your artist management company. Provide a short summary of the key points in each ...

  6. Music Business Plan Template + Example (Updated 2024)

    The following business plan template gives you the key elements to include in a winning music business plan. It can be used to create a music production company business plan, a business plan for a music artist, or business plans for a music teacher and/or music management.

  7. How To Start An Artist Management Company

    Draft an Artist Management Company Business Plan. Download our Free Artist Management Start-up Kit! 5. Make a Name for Yourself. Literally and figuratively. Now that you have a roster and a plan, come up with an artist management company name and register it with the government.

  8. Music Business Plan Template (2024)

    Writing a music business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and ...

  9. Developing A Music Business Plan

    The main components of a music business plan. The content of your music business plan will vary depending upon whether you're aiming to start a music school, be a producer, or work as an artist. But the fundamental components are the same either way. Here's what you'll need: Mission Statement. Executive Summary.

  10. Tip Jar: How To Write A Music Business Plan

    Start by considering where you are currently in your music career and where you want to be. Give yourself a realistic time frame and work backwards, citing the steps and resources required to reach each milestone in your plan. 2. Take yourself seriously. This is not a joking matter.

  11. 6 Tips to Build a Solid Business Plan for Your Live Music Venue

    When you can back up decision-making with data, you're on the right path. 2. Cut the Fluff to Focus on the Tangibles. Speaking of specifics: the best business plans for live music venues aren't necessarily the lengthiest. We've seen great documents that are only a few pages long and alternatives that are small novels.

  12. PDF Creating a Successful Business Plan (for the Artist)

    The business plan might be included in applications for FACTOR or SRIA's new funding programs. Preparation for Writing the Business Plan: • Consider the reader and objectives. • Research all elements of the business plan. • Write the business plan yourself. • Develop an outline of key sections. • Use realistic financial projections.

  13. How to Start a Management Company

    How to start a management company. 1. Choose a management company name. 2. Know the specifics of who you want to manage and draw up a business plan. 3. Get your management company incorporated. 4. Hire support, especially for those areas you know little about.

  14. Entertainment Business Plan for Music Artist and Producers

    1.0 Entertainment & Music Business Plan Executive Summary. 1.1 COMPANY & INDUSTRY. DJA Records Corp. (DJA) will capitalize on the growing music entertainment market across the world through the production and promotion of high quality entertainment. Located in Miami, Florida, the company will become highly profitable through the sale of pre ...

  15. Music Business Plans Sample [Update 2024]

    2.1 The Business. Hymns & Beats will be a licensed music business based in Atlanta. The business will comprise artists and musicians who will work to create new music pieces. The business will utilize the talent of various singers to release stock music, record labels, and theme music for corporates, events, TV shows, movies, and game developers.

  16. A Guide To Management In The Music Industry

    Tour management can be one of the most important and hands-on types of management in the music industry, as it brings artists in direct contact with their fans. If you want to become a tour ...

  17. A Sample Music Business Plan

    A Sample Music Business Plan for Your Band. For those of you who haven't read my previous posts on this topic, I'll briefly bring you up to speed. ... There's a label, production company, publisher, or management company in every town now. They are the ones usually seeking an investment. December 14 | Bruce Warila Absolutely, although they ...

  18. Music Production Business Plan Template & Guidebook

    How to Write a Music Production Business Plan in 7 Steps: 1. Describe the Purpose of Your Music Production Business. The first step to writing your business plan is to describe the purpose of your music production business. This includes describing why you are starting this type of business, and what problems it will solve for customers.

  19. Music Recording Producer Business Plan Example

    Executive Summary. Mt. Hood Records is an unusual but sustainable business model for a record label. The company has been founded by Hillary MacQuilliams as an Oregon registered LLC. The business operates to promote several Portland based bands, all with the common element of improvisation. Industry Analysis.

  20. Music Recording Distribution Business Plan Example

    1.1 Objectives. Sign and record two new Heavy Metal bands in the first year. Release the first CD of each group in the first year. Establish a strong distribution network that will facilitate CD sales. Establish the necessary strategic alliances to assure the widest possible distribution of our music.

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    The best way to accomplish any business or personal goal is to write out every possible step it takes to achieve the goal. Then, order those steps by what needs to happen first. Some steps may ...

  22. Music Festival Business Plan [Free Template

    Writing a music festival business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan: 1. Executive Summary. An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready ...

  23. Musical Instrument Store Business Plan Example

    Grandma's Music and Sound, 800 S-T Juan Tabo NE, Albuquerque, NM 87123. Hours Mon-Fri: 9-6 | Sat: 10-5. Grandma's Music is Albuquerque's largest musical instrument retailer, with over 13,500 sq. ft. This store is a pro shop that carries state-of-the-art technology within its pro audio department.

  24. 19 Small Business Ideas For 2024

    4. Pet Care Services. A dog walking business is an excellent opportunity for someone who loves dogs and is good with other people's dogs. You get out every day and enjoy fresh air with grateful ...

  25. How To Write a Winning Music Artist Business Plan + Template

    It should summarize the main points, which will be presented in full in the rest of your business plan. Start with a one-line description of your music artist company. Provide a short summary of the key points in each section of your business plan, which includes information about your company's management team, industry analysis, competitive ...

  26. Business Management: How to Manage a Business for Long-Term Success

    Think of your business plan as a business survival plan. If sales are down, your plan should consider detailing how you intend to improve your financial performance, e.g., by cutting costs and boosting sales. Address actions for the short term (1 to 6 months), medium term (6 months to 18 months) and long term (18 months and beyond).

  27. Cracker Barrel plans changes after CEO says brand isn't relevant

    Updated: 11:14 AM MDT May 27, 2024. DENVER — Cracker Barrel is planning some major changes. The CEO announced changes May 16 in a conference call with investors for the company known for its ...

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    Google Drive — 15GB free cloud storage for photos. OneDrive — 5GB free cloud storage but with a 100GB file size limit. Koofr - 10GB of free space with great security and privacy. Dropbox ...

  29. Tencent, Tencent Music to pick up 10% stake in Thailand's GMM Music for

    Thai entertainment platform GMM Music on Monday said Tencent and Tencent Music Entertainment will acquire a 10% stake in the company for $70 million, solidifying its spin-off plan.

  30. Boeing Tells FAA Plan To Fix Safety Issues

    The action plan is the latest in a series of moves by the F.A.A. to push for safety improvements throughout Boeing during a tumultuous year for the company.